Custodial vs DEX / Decentralized Exchange
Quick comparison to help you distinguish these two crypto terms.
Custodial
beginner
fundamentals
A custodial service is one where a third party, such as an exchange, holds and controls your cryptocurrency private keys on your behalf rather than you controlling them directly.
Read full definitionDEX / Decentralized Exchange
intermediate
market_structure
A decentralized exchange is a blockchain-based trading platform that allows users to swap cryptocurrencies directly from their own wallets without a company holding their funds.
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