A Wallet is a file that houses private and public keys. It usually contains a software client which allows to send and receive digital currency and monitor the balance on a specific blockchain that the wallet is designed for.
How many types of wallets do exist? They can be divided into five types and each comes with varying levels of security to ensure the safety of your private keys; online (web), mobile, desktop, hardware, and paper wallets.
How do crypto wallets work? Wallets are used to store private keys: long hexadecimal codes known only to you. They must match with a public key so you can spend your money.