What is a crypto wallet

A crypto wallet is a software program or hardware device that allows users to store, send, and receive cryptocurrencies. It essentially serves as a digital wallet for holding cryptographic keys that are necessary for accessing and managing a user's cryptocurrency assets. These cryptographic keys consist of a public key, which mostly represented by an address and is used for receiving funds, and a private key, which is like a password and is used for authorizing transactions.

When a user creates a crypto wallet, the software or hardware device generates a pair of cryptographic keys: a public key and a private key. The wallet securely stores these keys. The public key can be shared freely with others, allowing them to send cryptocurrencies to the wallet. However, the private key must be kept secret and secure, as it grants access to the funds stored in the wallet. To send cryptocurrencies from the wallet, the user must digitally sign the transaction with their private key. This signature is verified by the blockchain network to ensure that the transaction is legitimate.