A crypto wallet is used to interact with a Blockchain network. The three major types of crypto wallets are hardware, software, and paper wallets. Based on their work, they can be further classified as cold or hot wallets. Software-based wallets are more accessible and more convenient, whereas hardware ones are the most secure. Paper wallets are printed out on paper and are now unreliable and obsolete. In reality, crypto wallets don’t store the currency but act as a tool of interaction with Blockchain, i.e., generating the necessary information to receive and send money via Blockchain transactions.

The information comprises pairs of private and public keys. Based on these keys, an alphanumeric identifier called address is generated. In essence, this address specifies the location to which coins can be sent to the Blockchain. The address can be shared to receive funds, but private keys are to be never disclosed. The private key can be used on any wallet for accessing the cryptocurrency. As long as the private key is known, funds are accessible on any device. Also, coins are just transferred from one address to another, never leaving the Blockchain..