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A cookie is a text-only string that websites stores in your browser.

This information is used by the website that stored it for later reference.

For example if a web site wants to store a information for a user that browsing it from that computer it can store that information in a cookie, so the next time this user comes to the web site the website can access the cookie and read the information.

Example:

If a website wants to know how many times a user has visited it can store an information of the number of times the user has been on the site in a cookie and each time the user comes back it can increment the cookie value.