What's that supposed to mean? Your Bitcoin (and Altcoin) wallet private key is never exposed, never used to log into you wallet, never created online, and untouchable to anyone, unless you decide to post it online somewhere.

IOTA on the contrary requires the seed, which is the private key, to log into your wallet. You can not even use that wallet to create this key aka seed locally. The functionality does not exist. And there is no way to password protect it, actually there are no means at all to protect it.