In my previous articles, we discussed how to get started with crypto trading on CEXs like Binance and Bybit. While these platforms are user-friendly and offer liquidity, they have one huge downside: when your crypto is on a CEX, you don’t own it.
Crypto is all about decentralization: taking ownership of your assets without reliance on intermediaries. Mastery of crypto wallets will open the door to the decentralized world to manage your wealth by yourself in full control over your funds.
Now, let’s go into detail about the basic levels of distinction between centralized exchanges and decentralized ownership, and why crypto wallets are so important in making this transition.
So, Binance and all other centralized exchanges are custodial. In other words, they store your crypto for you. Just like a bank, they keep your money, but you do not completely own them. This also means that your assets are at risk of getting hacked or developing some regulatory problems that may affect the exchange.
