While a lot of people compare a wallet vs exchange, they’re actually quite different, albeit having the same type of role. You’ll be in charge of your wallet, but an exchange is a service or website where you can:
- Buy and sell crypto
- Convert fiat currency into crypto
There are market rates for each currency that fluctuate much like the stock market does. When you use an exchange, it will also have a wallet hosted on the website – in most cases. These wallets are essentially web-based.
You’ll have to create an account on the exchange, sign in and then have access to your wallet.
The nice thing about an exchange is that it allows you easy access to all of your account information. You can quickly see your balance, make trades or sell your crypto this way. In fact, an exchange operates much like a bank in that it holds all of your “currency” for you.
There are obvious benefits of a cryptocurrency wallet vs exchange.