Just like a normal wallet, cryptocurrency wallet also stores your money. The only difference is that the money is stored digitally. The coins you have earned or purchased need a safe place to be stored hence the use of cryptocurrency wallet. The mechanism behind cryptocurrency wallet is a software program where the address and key is stored electronically and leads to the interaction between blockchain and various users by which they can send and receive digital currency while monitoring their balance.

Wallet is like a bank deposit for cryptocurrency. It is a place where you can store your Cryptocurrency . Cryptocurrency is digital money so owning Cryptocurrency simply means that you have a software address where money is stored and a secret key to see and use the balance. The address and key can be stored electronically or on paper as long as you can perverse it. The place where you store Cryptocurrency is called as Cryptocurrency Wallet. The wallet can be online or offline. The online wallet can be of two type — first is wallet available at different websites and second is wallet software stored on the computer. The offline wallet can be a hardware-based wallet which is just like a memory card or junk drive which can be accessed using USB port. As Cryptocurrency is based on code so the safest way to store it is to use the paper-based method. Hackers may get access to the online system so there is always a risk for online storage of money. However, paper-based storage is least convenient. Having digital wallet is the first thing to do before getting any Cryptocurrency.