A Bitcoin wallet is a tool that allows users to manage their Bitcoin by storing the cryptographic keys needed to access and spend their Sats. Wallets come in two main types: hot wallets and cold wallets. Hot wallets are connected to the internet, making them convenient for frequent transactions but more vulnerable to hacks. Cold wallets, on the other hand, are offline, providing enhanced security at the cost of convenience.

It's important to note that Bitcoin itself isn't stored in the wallet; instead, the wallet holds the private keys that grant access to the Bitcoin stored on the blockchain. This means the wallet functions more like a keychain, securely managing the keys needed to access one's Bitcoin.Because Bitcoin relies on a distributed ledger called the blockchain, transactions are validated by a network of nodes rather than a central authority. This means that trust is established through cryptographic proof rather than relying on a trusted third party, making Bitcoin a unique and revolutionary financial system.