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Crypto Dictionary

Wallet

Definition

A digital wallet that allows users to store and manage their cryptocurrency holdings.

Deep Dive

A cryptocurrency wallet is a digital tool or application that allows users to store, send, and receive cryptocurrencies by managing their cryptographic keys. Crucially, a wallet doesn't physically "hold" cryptocurrency coins; instead, it stores the private keys that prove ownership of the digital assets residing on the blockchain. When a user wants to send cryptocurrency, the wallet uses the private key to sign the transaction, broadcasting it to the network for verification and inclusion in a new block.

Examples & Use Cases

  • 1Using a MetaMask browser extension to interact with Ethereum dApps
  • 2Storing Bitcoin and Ethereum on a Ledger Nano X hardware wallet
  • 3Managing daily crypto transactions with a Trust Wallet mobile app.

Related Terms

Hot WalletCold StoragePrivate Key

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