Wallet - What is a crypto wallet?

One hears the term wallet again and again in connection with crypto currencies, but what exactly does wallet mean? A wallet is nothing else than a wallet, only virtual. There are different kinds of it, the most common are on-line Wallets. Those are Wallets, which lie with a company like for example Coinbase.

That has naturally the large advantage that one has very simply access to it, however one has no complete control over its Wallet. The company could theoretically make itself with the Coins from the dust and one can do nothing against it except afterwards legal steps to introduce.

If this risk is too high, you can also use a cold wallet. But of course there is no 100 percent security, so you should always take good care of your wallet. If you lose it, just like with a normal wallet, all the money is gone.

Note: So you should always use strong passwords and use them only for the wallet. Also a two factor authentication is highly recommended.