A wallet is used to store, send and receive crypto. Crypto wallets keep your private keys (passwords that grant you access to your crypto assets) safe and secure, allowing you to transfer and receive cryptocurrencies such as bitcoin (BTC) and ether (ETH). They come in a variety of shapes and sizes, ranging from hardware wallets like the Ledger (which resembles a USB stick) to smartphone apps.
Unlike a traditional wallet, which can hold physical cash, crypto wallets do not store your cryptocurrency. Your assets are stored on the blockchain, but only a private key can access them. Your keys verify that you own your digital money and allow you to transact with it. You lose access to your money if you lose your private keys. As a result, it’s critical to maintain your hardware wallet secure or use a reputable wallet service.