A crypto wallet is a software program that stores private and public keys. It enable users to interact with blockchain networks by sending and receiving digital currency, as well as monitoring their balance. Crypto wallets can be used to manage different types of digital assets, including cryptocurrencies and non-fungible tokens (NFTs). There are different types of crypto wallets, like software wallets, hardware wallets, and paper wallets, each with its own set of features and benefits.
A crypto wallet is important for keeping your keypairs safe. A keypair consists of two related cryptographic keys, a public key, and a private key.
A public key is a cryptographic key that can be freely shared with anyone. This is used as an address to identify your account and receive funds, while a private key is used to sign transactions and should be kept confidential by the owner. When a user sends cryptocurrency to another user, they use the recipient's public key to encrypt the transaction, which can only be decrypted by the recipient with their private key.
It is important to keep the private key secure, as anyone who has access to it can sign transactions and transfer funds out of the wallet.