A cryptocurrency wallet is an element where your cryptographic assets are stored. It works as a kind of digital wallet for your cryptos.

1. They can be independent of the Exchange (exchange platform) that you use to buy or sell cryptocurrencies. This provides greater security and diversification.

2. In short, wallets allow you to store, send and receive crypto assets securely1.

How does a wallet work?

• Imagine that a wallet is like your physical wallet. Just as you take money out of your wallet to pay, you can use your wallet to carry out operations in a Blockchain environment.

• These operations are protected with keys, and this is where public and private keys come in:

  • Public key: Similar to a bank account number. You can share it to receive funds without the risk of someone mining your crypto.

  • Private key: Protects your cryptos and gives you access to them. You must take care of it carefully1.

Types of wallets:

• Software: These are applications or programs installed on your device.

• Online: You access through the web.

• Mobile: Apps for smartphones.

• Hot: Connected to the internet.

• Cold: Stored without an internet connection for greater security2.