All lessons

Understand crypto before trading

1What is crypto trading? 2Blockchains, ledgers and consensus 3Bitcoin, Ethereum, coins and tokens 4Build a safe practice plan

Wallets and personal security

5Wallets, keys and custody 6Recovery phrases and backups 7Networks, addresses and transfers 8Phishing, approvals and scams

Understand the trading venue

9Centralized and decentralized venues 10Pairs, order books and spreads 11Spot orders and execution 12Fees, slippage and liquidity

Risk before returns

13Size a spot position 14Portfolio concentration and correlations 15Drawdown, R multiples and expectancy 16Stablecoins and counterparty risk

Read crypto market structure

17Candles and an around-the-clock market 18Trends, ranges and price levels 19Breakouts, volume and confirmation 20Indicators and volatility

Apply chart frameworks to crypto

21Dow-style structure: what would change your view? 22Wyckoff in spot crypto: read the range carefully 23Elliott counts: keep an alternative on the page 24Liquidity sweeps: separate the wick from the story 25FVG and OTE: transfer the rules, not the promises

Understand asset economics

26Supply, market cap and FDV 27Token unlocks and distribution 28Network activity and on-chain data 29Research a project critically

Understand derivatives before considering them

30Spot, futures and perpetual contracts 31Funding, basis and mark price 32Margin, leverage and liquidation 33Open interest and liquidation data

Derivatives through paper examples

34Linear perpetual P&L: calculate the money, not the excitement 35Collateral and liquidation: a deliberately simplified worksheet 36Funding carry: count what you keep 37Dated futures: follow both sides of the hedge 38Calls and puts: payoff is not profit

Explore DeFi with caution

39Smart contracts and applications 40AMM pools and price impact 41Liquidity provision and changing asset value 42Staking, lending and bridges

Understand ecosystem risks

43Constant-product AMMs: calculate the moving price 44LP divergence loss: choose the right comparison 45Reorgs, bridges and L2s: what is actually final? 46MEV and arbitrage: subtract the competition 47DEX approvals: inspect before you sign

Build and test market hypotheses

48Market context and catalysts 49Write a setup rulebook 50Profiles, order flow and SMC limits 51Backtest crypto data honestly

Research, allocation and review

52Token vesting: size the unlock, then ask why 53On-chain metrics: count activity, not stories 54Stablecoin depeg: map access, not just reserves 55Rebalancing: weights change even when you do nothing 56Advanced crypto capstone: defend the whole plan

Practice, review and stay informed

57Paper trade and keep a journal 58FOMO and decision routines 59Records, local rules and changing information 60Capstone: research and risk plan

9 / 60

Centralized and decentralized venues

3 min read

Removing an intermediary changes the risks; it does not remove every risk. Compare custody, execution and recovery separately.

Here is what we will figure out

Compare custody, execution and settlement.

A centralized venue normally maintains customer accounts and matches orders through its own systems. A displayed balance is subject to that venue's custody and withdrawal arrangements. Trading may occur inside its records before any blockchain withdrawal is made.

A decentralized application can execute swaps through smart contracts. An automated market maker quotes from pool reserves; an order-book system matches orders. Decentralized branding does not remove website, admin-key, governance, oracle or contract dependencies.

Compare the full path: who holds assets, how prices form, when settlement occurs and what happens during outages. A cheaper displayed fee may be offset by network charges or price impact. Neither venue category is automatically suitable for every asset or user.

Let’s use numbers · hypothetical example

Hypothetical: buying 100 units on a custodial venue changes its internal balance. Swapping from a self-custody wallet may require a contract transaction and network fee. Both can expose you to different failures even when the quoted price matches.

Keep in mind

An audit or proof-of-reserves display is not a guarantee of solvency or contract safety.

Your turn

Make a four-column comparison: custody, execution, settlement and failure recovery. Use fictional venues.

A quick check before we move on

Does 'decentralized' mean no dependencies?

No
Yes
Only if fees are low

Check answer

No Applications can retain contract, governance and infrastructure dependencies.

Sources and further reading

Content reviewed: 29 October 2026