What is a wallet?

A wallet is an application to hold and send cryptocurrencies. That’s the basic tenet. It’s similar to a real-life wallet that you put inside your pocket. You hold some money inside the wallet. The wallet keeps the money safe. You can also take out the money from the wallet to pay for some meals or other nice things.

Cryptocurrencies, such as Bitcoin or Ethereum are do not exist in the physical world. So, what do we mean by holding cryptocurrencies in a cryptocurrency wallet? It means you know the private key directly or indirectly (through the encrypted file with password). That way, you can create and sign transactions, like sending ETH or vote in a voting application. Thus, in one way or another, the wallet must provide access to the private key. Besides that, the wallet must show the balance of the account to its owner.

While cryptocurrency is digital and does not have a physical shape, the cryptocurrency wallet can have a physical shape. It...