A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets. When a user acquires cryptocurrency or tokens, he can store it in a wallet and from there use it to make transactions.
Why we need to use a Wallet?
Just like you need a wallet to protect your cash and credit cards, you should also know where you’re going to store your crypto.
In the event your crypto was stolen by hackers or the exchange failed, that’s another added protection for your investment.
Tthere are exchanges that have gone above and beyond for security and safekeeping.” Your crypto isn’t protected by any regulatory body like cash in a bank is.
Still, the risk of hacking remains. Just last year, KuCoin (the fifth largest exchange by volume, according to CoinMarketcap) experienced a hack worth more than $200 million. Though users’ funds were recovered, it highlights the risk any exchange can carry — just like traditional financial institutions.
