If you’re just getting started with crypto, it’s important to understand the difference between a crypto wallet and a centralized exchange. While both let you store and manage digital assets, they serve very different purposes — especially when it comes to control, custody, and risk.

Centralized Exchange

A centralized exchange (CEX) like Coinbase, Binance, or Kraken is a platform where you can buy, sell, and hold cryptocurrencies.

Crypto Wallet

A crypto wallet (like MetaMask, Xaman, or Ledger) is a non-custodial tool that gives you full ownership of your crypto.

Key Differences

Check out this guide for how to send assets from a centralized exchange to a crypto wallet.

What can you do with a crypto wallet that you cannot do with a centralized exchange?

Crypto wallets offer a world of opportunities that do not exist on centralized exchanges. There are thousands of decentralized apps (dApps) that exist and can only be used by connecting your wallet. Each chain is comprised of an entire ecosystem of projects building dApps for users like you.

It’s not all trading. It’s social apps, gaming, and NFTs, too. Here are some activities you can participate in with a crypto wallet:

You can also explore specific ecosystems (like Base), jump from dApp to dApp, and participate in community-wide campaigns through platforms like Superboard.

There’s a whole world out there. Explore 80+ chains with Squid today.