What is a bitcoin wallet?

On a practical level, a Bitcoin wallet is a device or program that is used to send and receive bitcoins. The term wallet can be a little confusing for people new to Bitcoin and crypto. A physical wallet is used to store physical currency, however a Bitcoin wallet does not store bitcoins within it. How can this work?

Can a bitcoin wallet be used for multiple cryptocurrencies?

Some Bitcoin wallets can be used for multiple cryptocurrencies. A Bitcoin wallet is a device or program that can interact with the Bitcoin blockchain. Although it is common to think of these wallets "storing" Bitcoins, a Bitcoin wallet actually represents cryptographic control of a blockchain address.

Where are Bitcoins stored in a wallet?

Bitcoin Wallet. A Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance.

How to keep your bitcoin wallet safe?

Keeping your Bitcoin wallet safe is essential as Bitcoin wallets represent high-value targets for hackers. Some safeguards include: encrypting the wallet with a strong password, and choosing the cold storage option, i.e., storing it offline.