FACTS FOR NEWBIES 🔴

CRYPTOCURRENCIES

Centralized and Decentralized

Centralized cryptocurrencies are controlled by one entity, such as USDT (Tether), which is managed by Tether Limited.

Decentralized cryptocurrencies do not have central control, such as DAI, which is managed by smart contracts on the Ethereum blockchain.

Centralized Currencies:

• Advantages: support.

• Disadvantages: you need to trust an entity with your coins, they control them and know how you manage them (What you do with your coins is not anonymous).

Decentralized Currencies:

• Advantages: They cannot be blocked, they cannot be taken away or managed. They are transparent and secure. Only you know about your transactions and what you do with them is anonymous.

• Disadvantages: They can be harder to use, lose, and can be used for illegal purposes.