A Bitcoin wallet is a place that stores your digital Bitcoin and validates your transactions when you're using your Bitcoin. When using Bitcoins, you can your store cryptos in a central location. You can also transfer cryptos to another wallet, an External Wallet. This wallet must always be a wallet you have access to. If a third party provides the wallet service, you must have ownership over that wallet. The most prominent example is an account on an exchange. If you store your cryptos with a third party, there is no need to download software and maintenance is automatically performed. There's also a self-managed wallet option. Self-managed wallet it's a wallet for which you manage the private keys yourself. A self-managed wallet can be downloaded or purchased in the form of a cold or physical wallet.