Blockgeeks say that a cryptocurrency wallet is a “software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance.” But in simpler terms, if you want to use cryptocurrencies like bitcoin or ether, you need a crypto wallet. Much like when you need a real wallet for your real money, you also need a virtual wallet for your virtual money.
But there is a difference, however. Crypto wallets don’t exactly store the digital currency since the cryptocurrencies don’t really exist in physical form so it could not be stored. What are stored, however, are transactions and records on the blockchain.
Crypto wallets are software programs that allow users to monitor their balance, send and manage other transactions. So when people send you digital currency, they are basically disowning the coins and turning them into your crypto wallet. And to enable the usage of those coins, the public address the digital currency is assigned to should match your wallet’s private key. Once it matches, your cryptocurrency count will increase, and the senders’ will decrease.
It is easy to understand and people new to the blockchain industry needs to learn that the blockchain may be technical but as long as you take the time to learn it, nothing is impossible to understand.