A Bitcoin wallet is a type of digital wallet used to send and receive Bitcoins. This is analogous to a physical wallet. However, instead of storing physical currency, the wallet stores the cryptographic information used to access Bitcoin addresses and send transactions. Some Bitcoin wallets can also be used for other 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.

Each Bitcoin wallet contains a set of secret numbers, or private keys, corresponding to the user's blockchain address book. These keys are used to sign Bitcoin transactions, effectively giving the user control over the bitcoins in that address. If an attacker can steal a wallet's private keys, they can move the Bitcoins in that address to their own wallet.

The main types are desktop wallets, mobile wallets, web wallets, and hardware wallets.
One of the most important things to consider before you buy Bitcoin is that you have a suitable crypto wallet in place.

FEATURES

• No registration, web service or cloud needed! This wallet is de-centralized and peer to peer.
• Display of Bitcoin amount in BTC, mBTC and µBTC.
• Conversion to and from national currencies.
• Sending and receiving of Bitcoin via NFC, QR codes or Bitcoin URLs.
• When you're offline, you can still pay via Bluetooth.
• System notification for received coins.
• Sweeping of paper wallets (e.g. those used for cold storage).
• App widget for Bitcoin balance.
• Safety: Supports Taproot, Segwit and the new bech32m format.
• Privacy: Supports Tor via the separate Orbot app.

Mobile wallets perform the same functions as a desktop wallet, but on a smartphone or other mobile device. Many mobile wallets can facilitate quick payments in physical stores through near field communication (NFC) or by scanning a QR code.

Mobile wallets tend to be compatible with either iOS or Android. Bitcoin Wallet, Hive Android, and Mycelium Bitcoin Wallet are examples of mobile wallets. There have been many cases of malware disguised as Bitcoin wallets, so it is advisable to research carefully before deciding which one to use. Wallet safety is essential, as cryptocurrencies are high-value targets for hackers. Some safeguards include encrypting the wallet with a strong password, using two-factor authentication for exchanges, and storing large amounts in an offline device.

Most modern wallets are generated from a twelve-word mnemonic seed, which can be used to restore the wallet if the device is lost or damaged. These words should be carefully stored in a safe place, since anyone who finds them will be able to steal your cryptocurrency.

Disclaimer: Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
It allows you to:

- Buy Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and select ERC-20 tokens quickly and easily via credit card, Apple Pay, and more.

- Sell BTC, BCH, ETH and select ERC-20 tokens into your local currency (in select regions).

- Send, receive, and swap between BTC, BCH, ETH, USDT, and thousands of other cryptocurrencies (ERC-20 and SLP).

- Access DeFi apps that enable you to earn interest on your cryptoassets, participate in NFT marketplaces, and more.