What is the purpose of a cryptocurrency wallet?

A cryptocurrency wallet is a digital tool that allows users to store, manage, and interact with their cryptocurrencies. Wallets can be either hot (connected to the internet) or cold (offline) and come in various forms, including software wallets (e.g., mobile apps, desktop applications), hardware wallets (physical devices), and paper wallets (printed QR codes). The wallet stores private keys, which are necessary for accessing and managing the cryptocurrencies in the associated address. Wallets also allow users to send, receive, and track transactions securely. Properly securing one’s wallet is critical, as losing access to the private key can result in the loss of funds.