An external wallet is a type of cryptocurrency wallet that is not connected to an exchange. Instead of storing funds on a trading platform, users hold their assets in a separate wallet. These wallets can enhance security and give users more control over their cryptocurrency.External wallets come in different forms, such as hardware wallets, software wallets, and paper wallets. Hardware wallets are physical devices that store private keys offline, making them resistant to hacking. Software wallets can be installed on computers or mobile devices, while paper wallets involve printing out keys and addresses.Using an external wallet reduces the risk of loss due to exchange hacks or failures. It also allows for greater privacy and ownership of assets. However, users are responsible for their security, as losing access to a wallet can mean losing the funds entirely. Overall, external wallets are a popular choice for those looking to securely manage and store their cryptocurrencies away from exchanges.