Crypto wallet
A tool for storing the private keys you use to manage the cryptocurrencies recorded on the blockchain.
A crypto wallet doesn't store the coins themselves — those always remain recorded on the blockchain. The wallet stores and protects your private key, the secret code that proves you have the right to control given funds, and lets you sign transactions.
Wallets are divided primarily into those connected to the internet (hot wallets) — convenient for everyday use — and those disconnected from the network (cold wallets) — safer for long-term storage of larger amounts. The choice between them mainly depends on how often you plan to use the funds and how large an amount you want to secure.
Related terms
Private key
A secret cryptographic code that gives full and exclusive control over the funds recorded at a given blockchain address.
Seed phrase (recovery phrase)
A sequence of 12-24 random words from which all of a wallet's private keys can be restored.
Cold wallet vs. hot wallet (offline and online wallets)
A hot wallet is connected to the internet and convenient for everyday use; a cold wallet stores keys offline and is safer for larger amounts.