A digital wallet is a tool that allows you to store, send, and receive digital assets such as Bitcoin, Ethereum (ETH), or stablecoins like USDT. It works similar to a traditional wallet, but instead of holding physical money, it manages your digital funds. Rather than storing actual coins or tokens, a digital wallet holds private keys—special codes that give you access to your assets on the blockchain. These keys are what allow you to send or receive digital money securely.

Digital wallets are categorised based on their method of asset storage and accessibility. The two most common types are hot wallets and cold wallets. Hot wallets are connected to the internet and allow for quick access, while cold wallets are offline and provide extra security for long-term storage.

The DAU Vault app offers both hot wallets (created within the app) and cold wallets (paired with DAU Key cards).