🎒 Imagine you have a money piggy bank…
There are two types:
🟥 First type: Centralized exchanges
Like:
• Binance
• OKX
• Bybit
• KuCoin
• MEXC
• Gate.io
• Bitget
🎯 What does centralized exchange mean?
It means you register with an email and password, you deposit your money in it,
but the real key to the wallet is not with you; it is with the company.
🔒 So what if the exchange shuts down?
Or if there are problems? Or hacking? Or freezing?
Your money could be lost because you don’t have the key!
🟩 Second type: Self-custodial wallets (Non-Custodial Wallets)
Like:
• Trust Wallet
• MetaMask
• Phantom (for Solana)
🎯 What’s the difference?
As soon as you open the wallet, they give you 12 or 24 words (called the secret phrase – Seed Phrase),
you are the only one who knows it, and you can open your wallet from anywhere in the world.
🔐 So what if the company shuts down? Or the internet goes down?
Your money is always with you because the key is in your hands.
🧠 And here’s the golden point:
“Not your key, not your wallet”
“Not your key? Not your wallet!”
For this reason, even if I use exchanges,
as soon as I earn or receive something, I immediately transfer it to my self-custodial wallet.
