A Bitcoin wallet is a digital wallet that stores the encryption material that allows access to a Bitcoin public address and enables transactions," says Alexandre Kech, CEO of Onchain Custodian, a digital asset custody service. Bitcoin wallets not only store your digital coins but also protect them with a unique private key that ensures only you and anyone you give the code to can access your Bitcoin wallet. Consider it similar to a password for an online bank account.

A Bitcoin wallet is a digital tool that allows users to store, manage, and transact with their Bitcoin securely. Essentially, it provides access to a user’s Bitcoin holdings and keeps the private keys cryptographic keys that authorize transactions and prove ownership safe. There are several types of wallets:

1. Hot wallets are connected to the internet, such as mobile, web, and desktop wallets. They offer convenience and are ideal for quick transactions but are more vulnerable to cyber threats.

2. Cold wallets are offline, like hardware wallets or paper wallets, offering heightened security for long-term storage by being less susceptible to hacking.

Each wallet has a unique public address, used to receive Bitcoin, while the private key remains confidential. Choosing the right wallet depends on a user's needs, prioritizing security, accessibility, or convenience.