Crypto wallets and fiat wallets serve distinct purposes in managing different types of currencies. Crypto wallets are designed to securely store and transact with digital currencies like Bitcoin and Ethereum. They offer varying levels of security and accessibility through hardware wallets, software wallets, and web wallets. On the other hand, fiat (traditional currency) wallets deal with government-issued currencies and come in the form of physical wallets (cash) or bank accounts provided by f