Fiat wallet: main features and advantages of using for currency transactions
Cryptocurrencies are virtual funds that do not have a physical embodiment. They are stored in special accounts called electronic wallets. To transfer them into real money, you need to know what is a fiat wallet and how to create one.
Features of a fiat wallet
Fiat currencies are real currencies of different countries accepted for commodity-money relations. These are physical or non-cash funds stored in banks or at home with users. However, if you need to buy a token, you need to know what is fiat in crypto.
Fiat wallets conduct transactions in the Internet environment, do not require transferring funds into cash. They are linked to bank accounts and cards, and make it possible to carry out various actions with real currency funds.
However, fiat wallets are also able to interact with cryptocurrency wallets, conducting transactions with these assets. They are integrated into cryptocurrency trading platforms and allow you to transfer funds to and from the exchange without problems and in the shortest possible time. They facilitate bank transfers or transfers to bank cards. In essence, a fiat wallet is an intermediary between cryptocurrency platforms and the traditional banking system that works with regular real money.
Types of fiat wallets
There are two types of such wallets:
- Mobile, designed to be installed on a tablet or smartphone, and storing real money. They can be withdrawn from ATMs, transferred as payment for purchases and services. They can be integrated with various financial services and become part of a loyalty program.
- Web wallets work through browsers installed on a PC. In essence and functionality, they are no different from their mobile counterparts. They can be integrated into cryptocurrency exchanges to exchange tokens for fiat currencies.
Features of fiat and crypto wallets
It is necessary to understand that fiat wallets work with real currencies, and crypto wallets store and work only with tokens, that is, virtual currency. These options are not interchangeable.
Fiat options use two-factor authentication and regular encryption, crypto wallets work on blockchain technology, providing full transparency of the process for all participants in the chain. When choosing a specific wallet, it is worth considering what currencies it can work with, the principle of interaction with cryptocurrencies, the level of security.
