Wallet

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A crypto wallet is a software program, hardware device, or even a physical medium that stores the public and/or private keys required to interact with a blockchain network. These keys are essential for sending and receiving cryptocurrencies like Bitcoin or Ether, as well as managing non-fungible tokens (NFTs) and interacting with decentralized applications (dApps).

Contrary to its name, a crypto wallet doesn’t store the actual digital assets themselves, the assets always reside on the blockchain. Instead, the wallet securely holds the cryptographic keys that prove ownership and authorize transactions. Private keys must be kept secret as they grant access to the user’s funds, while public keys (which derive addresses) can be shared to receive funds. Wallets come in various forms: software wallets (desktop, mobile, web-based), hardware wallets (physical devices offering enhanced security by keeping private keys offline), and paper wallets (physical printouts of keys). Choosing the right type of wallet depends on the user’s needs regarding security, convenience, and the assets they wish to manage.

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