The catch phrase “what’s in your wallet?” applies here. All wallets, men’s or women’s, do the same thing. They hold your paper money so that you can organize it, hold your credit cards, nicely displays your driver’s license, and miscellaneous places to store other pieces of paper.
Unlike the wallet in your pocket, a bitcoin wallet is software you install on your computer or mobile device. There are different types of bitcoin wallets, but like the above example, you will use the one that best meets your needs.
Wallets do a few basic things, they will first walk you through the process of creating a private key. Then it will provide you with an address when you need one. It will also notify you when it detects a transaction. Lastly, it gets its information from public and private services.
The private key is the information the wallet needs to show you an address and keep track of the transactions related to your private key. The private key will be a set of words in a specific order. The wallet software will remember your private key for you on that computer or mobile device.
In part 8 we will discuss what is needed to send a transaction.
