Their purpose was to contain and confine the Jews.
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There were Closed, Open, and Destruction ghettos during the Holocaust..
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Camps, by far. Ghettos held only a couple of million people, where as there were tens of millions in the camps (not all at the same time).
During the Holocaust the Jews were first sent to ghettos and from there to extermination camps and concentration camps.After the Holocaust many Jews were unable to go home and had to live in camps for Displaced Persons until they could find somewhere permanent.
Yes people still held bar mitzvahs in the ghetto but they were very small and secretive so they wouldn't get caught.