---
description: some important information
---

# Wallet definitions

![](https://2741874866-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FhcgILJ1hVeIMLmFUUcCE%2Fuploads%2FbkyCN7u8Ru5gd8xgf6Nl%2Fwallletssssssss.bmp?alt=media\&token=399ed3f0-210c-48f0-bb88-224116c1b379)

## What is a cryptocurrency Wallet?

_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._
