Summary:
A Bitcoin wallet is a software or hardware tool that allows you to send, receive, and store bitcoin by managing your private and public keys.
Details:
Bitcoin wallets don’t actually store coins—they store the cryptographic keys that give access to the bitcoin recorded on the blockchain. A wallet generates both a public key (used to receive funds) and a private key (used to sign transactions and prove ownership).
There are several types of wallets, including mobile apps, desktop software, web wallets, hardware devices, and paper wallets. Each type offers different trade-offs in convenience, security, and privacy. Choosing the right wallet depends on your needs, level of technical comfort, and amount of bitcoin held.
Key Features:
- Private key: The secret that allows you to control and spend your bitcoin.
- Public key: Used to generate your bitcoin address and receive funds.
- Hot wallets: Connected to the internet; ideal for daily use.
- Cold wallets: Offline storage; best for long-term holdings.
- Hardware wallets: Physical devices offering top-tier security.
- Wallet backups: Typically in the form of a 12- or 24-word seed phrase.