Bitcoin and other cryptocurrency wallets allow us to store digital assets more securely. Having your cryptocurrency off the exchange and in your personal wallet ensures that only you have control of your money's private key. Also, a separate fund storage environment from an exchange eliminates the risk of losing your funds if the Bitcoin exchange is hacked. Important Note: Most exchanges offer wallets for their users, but security is not the exchange's primary business. Generally, it is not recommended to use an exchange wallet for large or long-term cryptocurrency assets. Some wallets have more features than others. Some are developed exclusively for Bitcoin, while others offer the ability to store various altcoin types. Some wallets also offer the ability to exchange one of your digital coins for another. You will come across multiple alternatives when choosing a Bitcoin wallet, but the concepts of hot wallets (online wallets) and cold wallets (paper or hardware wallets) are the first to understand about crypto wallets.