Dear reader, where do you hold your money? In your wallet, in a bank, under your bed, or you go for all three options? Well, there are valid reasons for keeping the money in different places — the way we keep them. We want to buy flowers and chocolates for our significant other on Valentine’s day paying cash to a seller right away, we are saving money to buy an apartment — we keep money in a bank. Anyhow, you are the only person that has access to your funds: you know where is your wallet and you know pin code for your banking card. The story is no different in the crypto world, except the wallets are a bit more complicated.
Digital crypto wallets are of 2 main types. First, there are hardware wallets — physical devices that usually look like flash drives. Second, there are software wallets, where the closest analogy is an online app that gives you access to your funds.