Exchanges and wallets serve different purposes in the world of cryptocurrency. Exchanges are platforms where users can buy, sell, and trade cryptocurrencies like Bitcoin and Ethereum. They act as intermediaries between buyers and sellers, facilitating transactions and providing liquidity to the market.

On the other hand, wallets are digital tools that allow users to store, send, and receive cryptocurrencies. They come in various forms, including hardware wallets (physical devices), software wallets (applications), and paper wallets (physical copies of private keys).

In essence, exchanges are like digital marketplaces, while wallets are like digital vaults for storing and managing cryptocurrencies. It's important to use both responsibly and to understand the security measures each offers.