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