Crypto wallets store your public and private keys and interact with the blockchain to manage your digital assets. Public keys are like your address, while private keys prove ownership. Hot wallets (like browser extensions) are connected to the internet, making them convenient. Cold wallets (like USB devices) are offline and more secure. Always back up your wallet with a recovery phrase.

Example Shown in Video: MetaMask is a popular browser wallet used to interact with Ethereum-based dApps, allowing users to send ETH or buy NFTs directly.