A crypto wallet, at its core, is a digital tool that allows users to store, send, and receive cryptocurrencies like Bitcoin, Ethereum, and many others. Unlike the physical wallets we carry in our pockets, crypto wallets don't actually "store" cryptocurrency. Instead, they hold cryptographic keys: a public key, which is like an address that others can see and send funds to, and a private key, which is known only to the wallet's owner and is used to sign transactions and access their funds.

These are connected to the internet, making them more user-friendly and suitable for frequent transactions. Examples include desktop wallets, mobile wallets, and web-based wallets. However, being online means they are potentially vulnerable to cyber-attacks.

These are offline wallets, offering a higher security level since they aren't exposed to online threats. Physical devices like hardware wallets or paper wallets, where private keys are printed or written down, are common forms of cold wallets.

When choosing a wallet, it's essential to consider the balance between convenience and security, depending on one's usage and investment size. Always remember to back up your wallet and keep private keys confidential to ensure the safety of your assets.