Exchanges, Wallets & Security

CENTRALISED EXCHANGE (CEX) — Binance, Coinbase, Kraken Run by a company. You have an account, they hold your funds in custody. Easy to use, fast, good liquidity. Risk: the exchange can be hacked, go bankrupt (see: FTX), or freeze your account. DECENTRALISED EXCHANGE (DEX) — Uniswap, dYdX, Jupiter No company controls it. You connect your own wallet and trade directly on-chain. You always hold your keys. Risk: no customer support, smart contract bugs, higher complexity, gas fees. For trading: use a CEX (Coinbase Advanced or Binance). For DeFi or buying tokens not listed on CEXs: use a DEX with a self-custody wallet.

HOT WALLET (always connected to internet) Examples: MetaMask (browser extension), Trust Wallet (mobile), Phantom (Solana) Use for: small amounts, active DeFi, daily transactions Risk: internet-connected = hackable COLD WALLET (hardware, offline) Examples: Ledger, Trezor Use for: long-term holdings (anything you won't touch for months) Risk: if you lose the seed phrase, funds are gone forever The rule: anything under $500 can live on exchange. $500–$5k → hot wallet. $5k+ → hardware wallet. ⚠️ NEVER share your seed phrase with anyone. Ever. Not support staff. Not your AI assistant. Nobody.