A Bitcoin wallet (cryptocurrency wallet) serves a purpose, and knowing about their function will help users understand better how wallets work in order to secure their digital assets and transactions. The basic facts are the most important information users need to know.
Before delving into advanced topics, it is best to have a grasp of the basics which is the fundamental knowledge Bitcoin users need if they want to hold Bitcoin without a third-party (e.g. digital exchanges, brokers, fund managers, etc.). Many users today put trust in a third-party to hold their Bitcoin, but there needs to be an understanding of what exactly that means.
A Digital Wallet Is Software
In order to own a cryptocurrency asset, you must have a personal digital wallet which is a software application. It can be installed on your phone or other device like a laptop or PC. It can also be in the form of a dedicated hardware device (aka hardware or cold wallet). A wallet can also be provided as a service from a host (aka web or hot wallet), which is not installed on your device. It is online and accessible via a web browser.
