#CEXvsDEX101🔥

To understand the nature of cryptocurrency trading, it is necessary to distinguish between two types of platforms:

centralized platforms and decentralized platforms.

Centralized platforms like Binance are managed by a company and control your money like traditional banks do.

You do not own the private keys to your wallet; rather, you trust the system... and that trust can be broken.

Decentralized platforms like Trust Wallet give you total control over your assets. Only you have the keys, and there are no intermediaries controlling your transactions.

What's the problem?

Centralized platforms, no matter how famous they are, remain susceptible to bankruptcy, freezing, or hacking.

The collapse of the FTX platform is a clear example, where thousands of investors lost their assets in days, simply because they trusted a centralized system that was not protected against collapse.

What's the lesson?

Do not put all your money in the hands of a single entity.

And keep a portion in decentralized platforms that protect you from any sudden crisis.