📰 Just Good to Know
CeFi vs DeFi Wallets: What’s the Difference?
⭐️ Centralized Finance Wallets (e.g. Binance, Coinbase)
Key features:
• Platform holds your private keys;
• Easy to use, often with customer support;
• Fast transactions, integrated with exchanges.
Risks:
• You don’t fully control your funds;
• Vulnerable to hacks or platform failures.
Best for:
• Beginners or those prioritizing convenience.
⚡️ Decentralized Finance Wallets (e.g. MetaMask, Trust Wallet)
Key features:
• You control your private keys;
• Direct access to DeFi protocols (swaps, staking, etc.);
• No middleman, full ownership.
Risks:
• You’re responsible for security (lose your keys, lose your funds);
• Steeper learning curve.
Best for:
• Crypto enthusiasts who value control and privacy.
CeFi = Convenience, but less control.
DeFi = Freedom, but more responsibility.
🔄 Earlier: Hot vs Cold Wallets.