What is a Digital Wallet?
Digital wallets are different from the everyday regular physical wallet you put in your backpack. Digital wallets are where you keep the passwords that allow you to access your digital assets, like cryptocurrencies and NFTs.Think of them as your Face ID meets your Google Login meets your bank account. They are kind of like your login for all web3 apps.
There are two main types of digital wallets: software and hardware. A software wallet comes as an app used on your computer or phone. You can hold your cryptocurrency online in a secure way on these wallets and access them whenever you need. A hardware wallet is a physical device where you can store your information. It adds an extra layer of security to keep your private information offline in one secure place to which only you have access.
There are also different ways to store your passwords to access your digital wallets: custodial vs non-custodial. A custodial wallet holds onto your private keys and protects your funds. A non-custodial wallet gives users full control over their private keys and you are responsible for keeping them safe. Digital wallets enable you to be in control and access your digital assets and serve as your passport to all things web3!