CEX (Centralized Exchange)

DEX (Decentralized Exchange)

A cryptocurrency exchange that operates without a central authority, allowing users to trade directly with one another through smart contracts. Unlike centralized exchanges, DEXs do not hold users' funds and typically do not require identity verification. Popular examples include Uniswap and SushiSwap, which use liquidity pools instead of traditional order books.

Wallet (Cryptocurrency)

A digital tool that allows you to store, send, and receive cryptocurrencies by managing your private and public keys. Wallets can be software-based (apps or browser extensions), hardware devices, or even paper printouts. They do not actually store your crypto but rather store the keys that prove your ownership of assets on the blockchain.

Cryptocurrency

A digital or virtual form of currency that uses cryptography for security and operates on decentralized networks, typically based on blockchain technology. Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority. They can be used for peer-to-peer transactions, investment, and as a medium of exchange on various platforms.

Private Key

A secret alphanumeric code that gives you full control over your cryptocurrency holdings and the ability to authorize transactions. Your private key must be kept secure and never shared, because anyone who obtains it can access and spend your funds. It works in conjunction with a public key to enable secure, encrypted transactions on the blockchain.