#TradingPairs101
Crypto in Brief!
To understand the nature of trading in cryptocurrencies, it is essential to distinguish between two types of platforms:
Centralized platforms and decentralized platforms.
Centralized platforms like Binance are managed by a company and control your funds just like traditional banks do.
So you do not own the private keys to your wallet, but place your trust in the system... and this trust can be broken.
Decentralized platforms like Trust Wallet give you complete control over your assets. You alone hold the keys, and there are no intermediaries controlling your transactions.
The problem?
Centralized platforms, no matter how famous, remain susceptible to bankruptcy, freezing, or hacking.
The collapse of the FTX platform is a stark example, where thousands of investors lost their assets in days, simply because they trusted a centralized system that was not immune to collapse.
The lesson?
Do not put all your money in the hands of one entity.
And keep part of it on decentralized platforms that protect you from any sudden crisis.
