What is a wallet?
Coins can be stored or rather administered via a wallet. This is because cryptocurrencies are not stored directly on a wallet. A wallet only stores the private key that is essential for accessing the coins within the blockchain. There are different ways to store this key.
- Desktop Wallet / Soft Wallet
- Paper Wallet / Mind Wallet
- Hardware Wallet
Cryptocurrencies can also be stored in wallets on exchanges. For security reasons, however, this is not recommended, since only the provider knows the private key.