Search
Results for “CEX vs Custodial wallet”
CEX
A CEX (centralized exchange) is a company that lets you buy, sell and trade crypto, often with ordinary money. While your coins sit in your exchange account, the company holds them for you; they are only in your control once you withdraw them to your own wallet.
What it means for you. Coins left on an exchange depend on that company: it can freeze withdrawals, be hacked, or fail, and a regulator warns there may be no recourse if crypto is stolen. Before depositing, check whether you can withdraw that coin to your own wallet, on which network, and what the withdrawal fee is.
Sources: ethereum.org: Get ETH (centralized and decentralized exchanges), CFTC: Understand the Risks of Virtual Currency Trading, Investor.gov (SEC): Exercise Caution with Crypto Asset Securities · checked 4 October 2026
Custodial wallet
A custodial wallet is an account where a company, such as an exchange, holds the private keys and moves crypto on your instructions. You see a balance and log in with a password, but on the blockchain the coins sit in addresses the company controls.
What it means for you. Your access depends on the company: it can be hacked, fail, or freeze withdrawals, and its terms decide what happens to your balance. Check whether you can withdraw to an address you control, what it costs, and how long it takes before you depend on it.
Sources: bitcoin.org: Secure your wallet, SEC Office of Investor Education: Crypto asset custody basics for retail investors · checked 4 October 2026