Cryptocurrency was once a niche topic that very few people knew about. But today, it's becoming the go-to for investors looking for unique ways to diversify their portfolios. With the rise of Web3 and decentralized apps (dApps), many are also using crypto to perform transactions, support blockchains and more.

But how does one access their crypto? That's where a cryptocurrency wallet comes in.

A cryptocurrency wallet is a simple application that allows access to coins and non-fungible tokens. These wallets have an appropriate name due to their similar functionality to traditional wallets that hold cash and credit cards. But unlike real-world wallets, crypto wallets are entirely digital. They have simple and intuitive interfaces you can access on your computer or mobile phone.

Another major difference between crypto wallets and real-world wallets is that they don't hold your actual currency. Instead, they safeguard the passkeys you need to access and use them. Crypto and NFTs are bits of data stored all over a database. These apps find all those bits and relay the total crypto and NFT wallet value to you.

Types of Crypto Wallets

The most common cryptocurrency wallets utilized today are entirely software. It's a major step up from the early days of cryptocurrency. Back then, people used paper wallets with keys scribbled on them! The software wallets utilized today are far more secure and convenient.

Wallets are available for smartphones and computers. They're beautifully designed and are your one-stop shop for performing transactions. Many apps also have exchange features and other tools. Of course, it's also the best place to keep track of your crypto and NFT wallet value.

An alternative to software wallets is hardware wallets. Serious investors and those who hold considerable crypto assets often prefer hardware. As the name implies, these wallets use a physical device you can plug into your computer to access. They look like small USB thumb drives. When connected, most hardware wallets can sign transactions automatically without requiring you to enter a key. As a result, you have better protection from hackers recording your screen or keypresses.

Author Resource:-

Emily Clarke writes about NFT data platform, NFT API, NFT metadata for 40+ chains and other related topics. You can find her thoughts at NFT integration blog.