Definition
A wallet is a digital concept used to hold and control the cryptographic keys that prove ownership of cryptocurrency on a blockchain. Instead of storing coins directly, it manages the information needed to authorize transactions and view balances associated with blockchain addresses. A wallet can exist as software, hardware, or even a written record, but its core purpose is to keep these keys organized and accessible.
In the context of security, a wallet acts as the main protection layer between a user’s assets and the rest of the network. It relies on elements like a Private Key and Seed Phrase to secure access and enable recovery. Different wallet types, such as a Hot Wallet or a Cold Wallet, reflect how and where these keys are stored, which affects both convenience and risk exposure.
In Simple Terms
A wallet is like a digital keychain that lets someone see and control their cryptocurrency on a blockchain. It does this by safely keeping secret information, such as a Private Key and Seed Phrase, that proves who owns which funds. Some wallets stay connected to the internet, like a Hot Wallet, while others are kept offline, like a Cold Wallet, but all serve the same basic role of protecting access to crypto.