Crypto exchanges 2025: Trade safely or rely on your own wallets?

Crypto exchanges 2025: Trade safely or rely on your own wallets?

Cryptocurrencies have firmly established themselves in the global financial system in 2025, yet confusion remains about how the crypto market works. Crypto exchanges play a central role in this ecosystem as they represent digital trading venues for buying, selling or exchanging cryptocurrencies. There are two main types of crypto exchanges: centralized (CEX) and decentralized (DEX) platforms. Examples of CEX include Binance and Coinbase, while DEX platforms operate like Uniswap.

While centralized exchanges are often perceived as more user-friendly, they come with specific risks. Analyst MartyParty warns of misunderstandings when dealing with these platforms. CEX are basically closed Web2 systems and not true crypto systems. The crypto balance on these exchanges only represents digital assets and not real blockchain assets. Users actually only have one promise as long as they do not transfer their coins to their own wallet.

Risks and security

A key risk of CEX is that exchanges may not cover their holdings 1:1 with real coins. Therefore, true ownership of cryptocurrencies is only possible if they are transferred in self-custody via their own blockchain wallets. This has increased the call for more education about crypto wallets to inform users about the risks and how to handle them properly.

In contrast, decentralized crypto exchanges offer direct trading opportunities between users without a central authority. This means that wallet-to-wallet trading is supported by smart contracts, leaving users in control of their private keys. The advantages lie in increased security and independence from central authorities, while the disadvantages such as lower user-friendliness and liquidity have to be accepted.

Trading opportunities and innovations

A new player in the trading space is the multi-chain trading bot Snorter, which is integrated into Telegram. This bot aims to make trading accessible to less experienced users and enables trades and portfolio analysis via easy-to-understand text commands. Snorter is based on the Solana blockchain, which enables fast order executions and has a built-in security architecture that analyzes orders in real time and minimizes risks.

Automated features such as stop-loss commands and copy trading are available for the bot. The associated token SNORT reduces trading fees and offers staking opportunities. SNORT is issued on both Ethereum and Solana and has a limited supply. SNORT's successful presale raised over $1.2 million, and developers are already working on connecting other networks such as Ethereum and BNB Chain.

Deciding which crypto exchange to use depends on individual needs and trading preferences. While CEXs offer ease of use and high liquidity, they are more vulnerable to security risks. DEXs, on the other hand, offer more control and security, but require more ownership and often have lower liquidity. The choice between these platforms therefore remains a personal and strategic decision.