Binance Wallets Explained: Over 90% of Users Don't Know This!

1- 'Fiat and Spot' Wallet (Classic wallet on Binance)

This is the main wallet that most users are familiar with.

Here, you manage your classic cryptos and stablecoins.

Main functions:

Deposit and withdrawal of crypto and fiat.

Conversion between cryptos (e.g., BTC → USDT).

Access to Binance sub-wallets, such as Margin, Futures, Earn, etc.

It is a centralized wallet, so Binance holds your private keys for you.

Very convenient for those who just want to buy, sell, or transfer without managing complex technical security.

2- Web3 Wallet (Decentralized wallet on Binance)

Called Binance Chain Wallet or Smart Chain Wallet, sometimes accessible via Binance Wallet / Wallet Extension.

This is a non-custodial wallet: you keep your private keys.

Main functions:

Direct interaction with DeFi, NFTs, and other Web3 projects.

Ability to connect the wallet to decentralized applications (dApps).

Management of tokens on compatible networks, such as BSC (Binance Smart Chain), Ethereum, and other EVM chains.

Advantages: more control and freedom.

Disadvantages: you are responsible for security (if you lose the private key or recovery phrase, you lose your funds).