A software wallet is an application, browser extension, or other software program used to manage private keys, create addresses, and sign transactions.

A software wallet may run on a desktop computer, smartphone, or browser. It may be hot when its keys are used in an internet-connected environment, and it may be non-custodial when the user controls the key material directly.

Depending on its implementation, a software wallet may support multiple networks, tokens, dApps, and smart contracts. Some wallets also provide built-in asset swaps, staking, and other functions.

The main security risks of software wallets are connected with the security of the device and application environment. Malware, phishing, malicious extensions, and exposure of the seed phrase can compromise assets. Wallet security therefore depends not only on the application itself but also on the entire environment in which it operates.