What Is a Crypto Wallet?

A crypto wallet stores the private keys that let you sign transactions on a blockchain. It does not hold coins itself — the ledger does that.

Hot vs. cold wallets

Hot wallets stay connected to the internet (mobile and browser apps), trading convenience for a larger attack surface. Cold wallets stay offline (hardware devices, paper backups), trading convenience for security.

For small, frequent transactions a hot wallet is fine. For long-term holdings, move funds to a cold wallet.