# Wallet aka **Cryptocurrency Wallet**s 1. Software that stores [[Private Key]] and monitors the [[Blockchain|blockchain]] (sometimes as a client of a server that does the processing) to allow users to send and receive [[Satoshi|satoshis]]. Synonyms: Wallet Not To Be Confused With: HD wallet (a protocol that allows all of a wallet’s keys to be created from a single seed). 3. Is a file that contains a collection of [[Private Key|private keys]] and communicates with the corresponding [[Blockchain|blockchain]]. Wallets contain keys, not [[Coin(s)|coins]]. Wallets require backups for security reasons. 4. Is a client program or web application used to manage accounts. Allows you to perform [[Transaction(s)|transactions]] from a given address and view its balance. 5. A digital wallet is where [[Crypto (cryptocurrency)|cryptocurrencies]] like [[Bitcoin (blockchain)]] are stored. More specifically, coins are actually stored in the [[Blockchain|Blockchain]] itself - to which the wallet merely gives access. 6. A file that houses a collection of [[Private Key|private keys]]. It usually contains a software client which allows access to view and create [[Transaction(s)|transactions]] on a specific [[Blockchain|blockchain]] that the wallet is designed for. Wallets contain keys, not [[Coin(s)|coins]]. Wallets also require backups for security reasons. 7. A store of digital assets such as [[Crypto (cryptocurrency)|cryptocurrencies]], analogous to a digital bank account. Crypto wallets can be divided into two categories: [[Hosted Wallet|hosted wallets]] (e.g. wallets store on [[Decentralized Exchange (DEX)|exchanges]] or third-party servers) and [[Cold Storage (wallet)|cold wallets]] (e.g. [[Hardware Wallet|hardware wallets]] such as the Ledger Nano S, [[Paper Wallet|paper wallets ]]and [[Desktop Wallet|desktop wallets]]). 9. Stores the digital assets you own. 9. Basically, it’s the [[Bitcoin (blockchain)]] or [[Crypto (cryptocurrency)|cryptocurrency]] equivalent of a bank account. It allows you to receive cryptocurrency, store them, and then send them to others. There are two main types of wallets: software and hardware. – A software wallet is one that you install on your own computer or mobile device. Software wallets are storage for cryptocurrency that exists purely as software files on a device. Software wallets can be generated for free from a variety of sources. Read more about different software wallets, and explore some options, here. – A hardware wallet stores [[Private Key|private keys]] on a secure hardware device. Hardware wallets are often regarded as the most secure way to hold crypto-currency, partly due to being ‘[[Cold Storage (wallet)|cold storage]]’ devices and having additional security features. Read more specifically on [[Hardware Wallet|hardware wallets]] here! 11. A software that manages a user’s [[Private Key|private keys]]. It usually contains a software client that allows access to view and create [[Transaction(s)|transactions]] on a specific [[Blockchain|blockchain]] that the wallet is designed for. 11. A [[Bitcoin (blockchain)]] wallet is loosely the equivalent of a physical wallet on the Bitcoin network. The wallet actually contains your [[Private Key|private key(s)]] which allow you to spend the bitcoins allocated to it in the block chain. Each Bitcoin wallet can show you the total balance of all bitcoins it controls and lets you pay a specific amount to a specific person, just like a real wallet. This is different to credit cards where you are charged by the merchant. 12. [[Crypto (cryptocurrency)|Cryptocurrency]] wallets are ways of storing your [[Private Key|private]] and [[Public Key|public keys]] to your cryptoassets. A wallet is a safe you can access to then get your keys. Wallets allow for easier access and backups if you don’t remember your private key with techniques such as the [[Seed Phrase|mnemonic seed phrase]], a series of 25 random words you have to input to get access to your [[Private Key]]. There are [[Software wallet|software wallets]] and [[Hardware Wallet|hardware wallets]]: software wallets store your keys online, while hardware wallets use a physical device such as the Trezor to protect your private key. 12. [[Crypto (cryptocurrency)]] wallets come in a variety of forms, their most basic function is to store a user’s private and [[public key]]s and interact with various blockchains enabling users to send and receive digital currency and monitor their cryptocurrency balances. Wallets have a [[public addres]]s that can be given out for people to send you digital assets, and a [[private key]] to confirm the transfer of digital assets to others. Wallets can be [[Software wallet|digital (software)]] or [[Hardware Wallet|physical (hardware)]], [[Hot Storage (wallet)|hot]] (connected to the internet) or [[Cold Storage (wallet)|cold]] (disconnected from the internet), [[Custodial (wallet)|custodial]] (a trusted third party has control of a user’s private keys) or non-custodial (only the user controls their private keys).