• A cryptocurrency wallet is a software program or device that stores the private keys used to access and manage your Bitcoin.
• A crypto wallet can be either a software wallet, which is a digital wallet that you can access via a computer or mobile device, or a hardware wallet.

A cryptocurrency wallet is a software program or device that stores the private keys used to access and manage your assets. Private keys are a string of alphanumeric characters that allow you to access your Bitcoin and make transactions.

A crypto wallet can be either a software wallet, which is a digital wallet that you can access via a computer or mobile device, or a hardware wallet, which is a physical device that stores your private keys and is connected to your computer via USB.

There are several types of software wallets, including desktop wallets, mobile wallets, and web wallets. Desktop wallets are installed on your computer, while mobile wallets are downloaded as apps on your mobile device. Web wallets are accessed through a web browser.

Hardware wallets, on the other hand, are physical devices that store your private keys offline. Some examples of hardware wallets include ELLIPAL Titan, NGRAVE, SafePal S1, Trezor Model One- Crypto Hardware Wallet, and BitBox02.

They are considered to be more secure than software wallets, as they are not connected to the internet and are less vulnerable to hacking attacks.

How Does a Crypto wallet work

A crypto wallet works by storing your private keys, which are used to sign transactions and access your balance. When you want to send or receive Bitcoin, your wallet generates a unique digital signature using your private key, which is then broadcast to the Bitcoin network for verification and inclusion in the blockchain.

Here’s a step-by-step overview of how a crypto wallet works:

Generating a public-private key pair: When you create a Bitcoin wallet, it generates a unique public-private key pair. The public key is used to receive Bitcoin, while the private key is used to sign transactions.

Receiving Bitcoin: When someone sends Bitcoin to your public address, it is recorded on the blockchain as an incoming transaction. Your wallet software scans the blockchain to find incoming transactions that belong to your public address.

Sending Bitcoin: To send Bitcoin, you need to provide your wallet software with the recipient’s public address and the amount you want to send. Your wallet software generates a transaction that includes your digital signature, which is created using your private key.

Broadcasting the transaction: Once your transaction is signed, your wallet software broadcasts it to the Bitcoin network, where it is verified by other users called nodes. Once it is verified, it is added to the blockchain and becomes part of the permanent transaction record.