A crypto wallet helps its users exchange cryptocurrencies with others. These wallets store private keys - a code that works much like a password. This private Key should match with a public key in order to process transactions.
Wallets are of various kinds. There are crypto wallets that can store multiple currencies and there are those that are meant to hold only one type of cryptocurrency. Wallets are also of different kinds based on the way they are accessed. For example, a mobile wallet is in the form of an application on a smartphone. A desktop wallet stores the keys on a private computer. A paper wallet is simply the keys printed on a paper.
Crypto wallets can also be hot wallets or cold wallets. A hot wallet is basically an online wallet. The wallet is accessible from anywhere and transactions can be made with extreme ease. Cold wallets, on the other hand, are offline. They can be stored securely and face lesser threats due to their offline nature.
And then there are custodial wallets (wallets that are controlled by a third party) and non-custodial wallets that give the user full access.