What is a wallet in blockchain?
Answer
A blockchain wallet is software (or hardware) that stores the private keys used to sign transactions, giving access to cryptocurrency on the blockchain. Importantly: wallets don't actually store cryptocurrency — the crypto lives on the blockchain; the wallet stores the keys that prove ownership. Types: (1) Hot wallets — connected to the internet; convenient for frequent transactions. Examples: MetaMask (browser extension), Trust Wallet (mobile), Coinbase Wallet; (2) Cold wallets (Hardware wallets) — offline storage; most secure for long-term storage. Examples: Ledger, Trezor; (3) Paper wallets — private key printed on paper; secure if stored safely; (4) Custodial wallets — the exchange or service holds the keys on your behalf (e.g., Coinbase). Risky: "not your keys, not your coins"; (5) Non-custodial wallets — you hold your own keys. Requires responsible backup of seed phrase (12/24 words). Seed phrases derive all private keys and must never be shared or stored online.