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Let's start with the definition. Router is a device which transfers packets between networks. The router chooses the next best link to send packets on in order to reach closer to the destination. Routers use Internet Protocol (IP) packet headers and routing tables, as well as internal protocols to determine the best path for each packet. Most routers connect a LAN (like the one in your home or office) to a WAN (like the cable system running your cable modem) by interfacing a broadband modem to the network within the enterprise, small office, or home.

A wireless router adds a built-in access point function to a multi-port Ethernet router. This combines multiple Ethernet networks with wireless connections as well. A typical router includes four Ethernet ports, an 802.11 access point, and sometimes a parallel port so it can be a print server. This gives wireless users the same ability as wired users to send and receive packets over multiple networks.

There may be some confusion over the difference between wireless routers and access points. The main thing to remember is that access points allow wireless clients access to a single network, while wireless routers allow clients to browse a number of different networks. The router always takes the IP address into account to make decisions on how to forward (i.e., route) the packet; whereas, access points generally ignore the IP address and forward all packets.

In addition, wireless routers implement the Network Address Translation (NAT) protocol that enables multiple network devices to share a single IP address generally provided by the Internet Service provider (ISP). Wireless routers also have the ability to provide port-based control, firewall management and Dynamic Host Configuration Protocol (DHCP) services for all devices. These functions make the wireless router much more versatile than an access point.

If you are interested buying wireless router, the best top rated models for now is Belkin Wireless Pre-N router.