A crypto wallet is simply software or hardware that stores a user's public and private keys. The public blockchain does not directly store a user's cryptocurrency, which is recorded on the public ledger directly. Instead, it provides an interface for viewing, receiving, and sending the user's cryptocurrencies, and possibly much more.

Crypto wallets serve as digital tools for securely storing, sending and receiving cryptocurrencies. It works on the principle of public key encryption, where users have a public key (wallet address) and a private key (password) to access their money. When someone sends cryptocurrency to your wallet address, they are essentially transferring ownership of the digital asset to your public account. Private keys are required for business authorization and must be stored securely; it should generally be stored offline or in a hardware wallet for additional protection. Wallets come in many types, including software, hardware, web wallets, or paper wallets, each with their own security and convenience.