Wallets allow you to interact with blockchains.
They don't actually hold your funds, but allow you to access, send and receive cryptocurrencies.
Wallets are an interface for you to store your private keys in order to access your funds more easily.
You can find wallets in different types:
- Paper wallets are a printed piece of paper with keys and QR codes on it that can be scanned to make transactions. They can be considered as cold wallets.
- Hardware wallets, on the other hand, are physical devices that do not have direct access to the Internet and are therefore a more secure way to store cryptocurrencies. They generate and store private keys without any connection to the Internet.
- Software wallets are non-physical programs that you download to your computer or smartphone. These are web wallets, desktop wallets and mobile wallets. They are connected to the Internet and the user must always make sure that the computer used is not vulnerable to virus and malware.