What is a cryptocurrency wallet and how does it work?

A cryptocurrency wallet is a digital tool that allows users to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, or others. It can be software-based (online, desktop, or mobile apps) or hardware-based (physical devices that store private keys offline). The wallet holds private and public keys, which are used to sign and authenticate transactions. Public keys act as the wallet’s address for receiving cryptocurrencies, while private keys are used to access and control the funds. Securely storing private keys is crucial for protecting assets, as anyone with access to them can initiate transactions.