What is Crypto Wallet? 

A cryptocurrency wallet is an application that serves as a cryptocurrency wallet. It is termed a wallet because it functions similarly to a wallet in which cash and cards are stored. Instead of these actual goods, it stores the passkeys you use to sign bitcoin transactions and offers the interface via which you may access your cryptocurrency.
The blockchain is now available to everyone, thanks to modern bitcoin wallets. Sending bitcoin was a strenuous activity that needed lengthy keys when it was initially launched. Nowadays, the programme does the majority of the work for you.
Satoshi Nakamoto, the creator of Bitcoin, created the first wallet. The second wallet belonged to Hal Finney, who interacted with Nakamoto and is said to have been the first to use the Bitcoin client software wallet. As a test, Nakamoto delivered him 10 bitcoin, and the cryptocurrency mania started.

Types of crypto wallets

Crypto wallets are classified into two types: software wallets and hardware wallets. Software wallets are desktop apps or browser extensions letting users transmit, receive, and store cryptocurrency. Hardware wallets, which are physical devices that can be connected to a computer, serve a similar purpose.
Because crypto is maintained online, software wallets are called “hot” wallets. Private keys are kept offline or in “cold” storage via hardware wallets.

Hardware wallets

A hardware wallet is a tiny device that may be used to store cryptocurrency offline. “A hardware wallet keeps your keys off your phone or computer,” Dietz explains. “Typically, the hardware wallet is plugged into a USB port. This is far more secure because all the signings take place outside your computer.”
A basic hardware wallet costs between $100 and $200. These are somewhat more difficult to use than software wallets.
The majority of hardware wallets communicate with computers in one of three ways:

• An internet-based interface
• App developed by the firm
• A distinct software wallet

Software wallets

A software wallet is an online computer application or mobile app that stores private keys. While software wallets are exclusive to each cryptocurrency, hardware wallets frequently handle numerous currencies.
There are three primary types of software wallets:
Web-based wallets, like MetaMask, serve as browser extensions and send ETH transactions, allowing users to interact with decentralised apps and decentralised finance (DeFi) protocols.
Desktop wallets: may be used on a desktop or laptop computer, such as the Electrum wallet
Mobile wallets: enable users to store cryptocurrency, send/receive transactions, and “swap” the private keys of an existing wallet into the app by scanning a QR code with their cellphones.
Although they all perform the same things, each sort of crypto wallet has its unique use case based on the user’s aims.

Conclusion

You cannot access your bitcoin without your private keys and a blockchain interface. Although all wallets can hold keys, only hot wallets can access the blockchain. Therefore keep your keys off your hot wallet until you need them.