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Wallet Meaning

A cryptocurrency wallet is a tool-either hardware, software, or a combination-that allows users to store, send, and receive digital assets. Wallets manage public and private keys: the public key generates addresses for receiving funds, while the private key signs transactions to prove ownership.

There are several types of wallets: custodial wallets, where a third party holds the private keys; non-custodial hot wallets, which store keys on internet-connected devices; and cold wallets, such as hardware devices or paper wallets, which keep keys offline for enhanced security. Features like seed phrases, multi-signature requirements, and biometric authentication enhance security.

Choosing the right wallet involves balancing convenience, security, and supported assets.

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