A cryptocurrency wallet is a digital tool that allows users to securely store and manage cryptocurrencies such as Bitcoin and Ethereum currency and conduct transactions. It serves as the interface for users to interact with the blockchain network and is an important part of the cryptocurrency ecosystem.

Crypto wallets work by managing a pair of cryptographic keys: a public key and a private key.

A public key is like a bank account number that you can share with others so that they can send you cryptocurrencies. The private key is like your bank card password and you must keep it safe as it allows you to approve transactions and authorize fund transfers.

What is a public key? What is a private key? What do they do? Please refer to the "What are public and private keys" section.

There are various crypto wallets on the market and we can classify them based on different factors.

Hot Wallet vs. Cold Wallet

Crypto wallets can be divided into hot wallets and cold wallets depending on whether they are connected to the Internet.

? Hot Wallet

A hot wallet is a crypto wallet that is online and connected to the Internet. Hot wallets are mainly software wallets, including browser, desktop and mobile wallets.

• Web wallet: A wallet that you can access through a web browser such as Google Chrome or Firefox.
• Desktop wallet: A software wallet that you download to your computer or laptop.
• Mobile wallet: a software wallet installed on a smartphone.

❄️ Cold wallet

A cold wallet refers to an offline crypto wallet that is not connected to the Internet. These include hardware wallets, brain wallets, and paper wallets.

• Hardware Wallet: A physical device, similar to a USB flash drive, that you can store offline. When trading, you can connect it to your online device via USB or Bluetooth. Popular brands include Ledger and Trezor.
• Brain Wallet: A method of keeping private keys in the brain's memory by memorizing the key or seed phrase.
• Paper Wallet: Write or print your private keys on paper and store them offline.

Customized wallets vs. non-custodial wallets

Crypto wallets can also be classified as custodial or non-custodial, depending on Who manages the private key.

? Custodial wallet

In a custodial wallet, a third-party organization, such as a centralized exchange, controls your private key. With these wallets, you can manage your funds using a username and password. If you forget your password, you can retrieve it via your mobile phone or email.

? Non-custodial wallet

Non-custodial wallets allow users to control their private keys and funds, ensuring complete decentralization through technology. OKX wallet is a non-custodial wallet.

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