Wallet can be thought of as a sort of "digital bank account" for cryptocurrencies. Wallets are simply a means of storing and managing digital assets. They can take various forms, from physical hardware devices to software programs or mobile apps.
Regardless of the form they take, wallets function as a secure place to store the private keys associated with a user's cryptocurrency funds. The private keys are what enable the user to access and transact with their funds, and without them, the funds are essentially inaccessible.
Wallets can be decentralised or centralised.
DECENTRALISED WALLET
A decentralized wallet works by connecting to a decentralized network, such as a blockchain, and using it to store and transact digital assets.
The wallet's private keys are stored locally on the user's device, rather than on a central server. Transactions are processed directly on the network, and are not subject to approval from any third-party.
The user's wallet address, which is used to send and receive funds, is also recorded on the blockchain. Each wallet address is unique, and can be used to look up transaction history and balance information. Decentralised wallets as more secure options compared to the centralised wallet. Some of the cryptocurrencies that are stored in decentralised wallets are Bitcoin, Litecoin, Ethereum and Monero.
CENTRALISED WALLET
A centralized wallet, on the other hand, is a wallet that is controlled by a third party, such as a bank or a financial institution. These wallets are usually web-based or app-based, and rely on a centralized server to store the user's private keys.
The third-party service provider also has the ability to approve or reject transactions. While this may be more convenient for some users, it also means that there is a single point of failure, and the user's funds could be frozen or seized by the third party.
XRP and EOS are cryptocurrencies that can be stored in the centralised wallet.
Here are some applications or websites you can download or visit to get started creating both centralised and decentralised wallets;
1. BINANCE - on this platform you can create both decentralised and centralised wallets. To register on binance,visit this link https://accounts.suitechsui.io/register?ref=78682447
2. LUNO - on this you can create only centralised wallets. Visit this link to register on luno https://www.luno.com/invite/BG7GJN
3. DIGIFINEX- you can create only centralised wallets. Visit this link to register https://www.digifinex.io/en-ww/n/register?inviteCode=VyPYV8
4. KU COIN - you can create only centralised wallets. Visit this link to register https://www.kucoin.com/r/rf/QBS2NMNG
5. METAMASK - on this you can create only decentralised wallets. Visit this link to register https://metamask.io
The first four links above are crypto exchanges. A crypto exchange is an online platform where you can buy and sell cryptocurrency. Just like stock exchanges, other than buying stocks of companies, you will be buying different crypto currencies and have options to trade them against one another.