Wallets, Exchanges & Crypto Security

• Crypto Wallet: store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum.

• Online Wallet: keys are stored in an app or other software 

• Hot Wallet

• Hardware Wallet: keys are stored in a thumb-drive device that is kept in a safe place and only connected to a computer when you want to use your crypto.

• Cold Wallet

• Crypto Exchange: allows users to buy, sell and trade their assets. Also often used as a place to store your newly purchased crypto assets, as well as a place for trading your digital assets for another.

• Centralized exchanges (CEX): are typically online trading platforms that match buyers and sellers via an order book.

• Decentralized Exchanges (DEX): are autonomous financial protocols powered by smart contracts that enable crypto traders to convert one digital asset for another with all transactions viewable on the blockchain.

*the difference between CEX and DEX; CEX is you are not actually trading the legit or the actual assets, you are not trading the actual cryptocurrency while DEX you are. CEX you are just going via order book, sometimes we here within leverage trading we here of contracts even in contracts you are not actually owning that crypto you are not actually trading that crypto your going via order book via a digital online piece of paper says that I’m gonna send this over to you and your gonna send this over to me. It’s not actually recorded inside of the blockchain. Whereas in DEX your actually, physically own that crypto asset that you will be going trading and exchanging and every single transaction is viewable on the blockchain.

The key difference: CEXs have control over your funds while you are interacting on the trading venue DEX users retain control over the funds while trading.

Centralization  VS Decentralization: