Centralized Exchange vs Proof of Reserves

Quick comparison to help you distinguish these two crypto terms.

Centralized Exchange
beginner
fundamentals

A centralized exchange is a company-operated trading platform where users deposit funds into exchange-controlled accounts and trade through a managed order book under the platform's custody and control.

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Proof of Reserves
intermediate
fundamentals

Proof of reserves is a cryptographic verification method that allows a centralized exchange to publicly demonstrate it holds sufficient assets to cover all user balances at a given point in time.

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