Crypto in a nutshell!

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, controlling your funds just like traditional banks do.

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

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

The problem?

Centralized platforms, no matter how popular, remain susceptible to bankruptcy, freezing, or hacking.

The collapse of the FTX platform serves as a stark example, where thousands of investors lost their assets within days, simply because they trusted a centralized system that was not fortified against collapse.

The lesson?

Do not keep all your money in the hands of one entity.

And keep a portion of it in decentralized platforms to protect yourself from any sudden crisis.