A crypto wallet is simply software or hardware that stores a user's public and private keys. The public blockchain does not directly store a user's cryptocurrency, which is recorded on the public ledger directly. Instead, it provides an interface for viewing, receiving, and sending the user's cryptocurrencies, and possibly much more.

Crypto wallets serve as digital tools for securely storing, sending and receiving cryptocurrencies. It works on the principle of public key encryption, where users have a public key (wallet address) and a private key (password) to access their money. When someone sends cryptocurrency to your wallet address, they are essentially transferring ownership of the digital asset to your public account. Private keys are required for business authorization and must be stored securely; it should generally be stored offline or in a hardware wallet for additional protection. Wallets come in many types, including software, hardware, web wallets, or paper wallets, each with their own security and convenience.

A crypto wallet is a digital tool that stores and manages cryptocurrencies like Bitcoin or Ethereum. It doesn't hold the currency itself but keeps the private and public keys used to access and transfer it on the blockchain.

- The public key is like an address that others use to send you crypto.
- The private key is a secret code granting access to your funds, allowing you to authorize transactions.

There are two main types of crypto wallets:
- Hot wallets, which are connected to the internet for ease of use but may be vulnerable to hacking.
- Cold wallets, which are offline and more secure for long-term storage.

Crypto wallets can be software-based (apps) or hardware-based (physical devices).