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⭐️ Frequently asked questions
✅ What is the difference between Spot and centralized exchanges/services like Binance, Coinbase or Crypto.com?
✅ What is the difference between Spot and centralized exchanges/services like Binance, Coinbase or Crypto.com?

Spot = self-custody wallet = YOU control your crypto. Centralized exchanges = THEY control your crypto.

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Written by Support team
Updated over a week ago

💸 Spot is a self-custody wallet (also called non-custodial or unhosted wallet) which means that Spot does not have control over your crypto. YOU control your crypto.

🏦 Binance, Coinbase, Kraken, Robinhood, Cash App, Crypto.com ... are centralized exchanges that store and control your crypto. THEY control your crypto.

⛔️ You should never store your cryptocurrencies on centralized exchanges.

🕊️ Spot allows you to export your seed phrase (12-word recovery phrase) and use it in other wallets like Ledger or Metamask. So if Spot disappears tomorrow you will still be able to access your cryptos in other wallets!

👉 With Spot you are your own bank.

👉 With Spot you have control over your funds, 24 hours a day, 7 days a week.

🔐 Spot is a perfect place to store your cryptocurrencies over time.


Differences between Spot and centralized exchanges:

⛔️ If a centralized exchange gets hacked, you could lose all your funds.

Spot does not store your funds. Funds are secured in every users' encrypted wallet.

⛔️ If a centralized exchange goes bankrupt, you could lose all your funds.

Spot does not store your funds and allows you to export your seed phrase (12-word recovery phrase) and use it in other wallets like Ledger or Metamask.

⛔️ A centralized exchange can block or seize your funds.

Spot does not have control over your funds and therefore cannot block, move or do anything with your cryptos.

⛔️ If a centralized exchange's servers are down, you cannot access your funds.

✅ Funds are not locked by Spot and are always accessible.

You are always free to export your seed phrase 🔑 (also called 12-words recovery phrase or private key) anytime and use another wallet!


🔑 "Not your keys, not your coins" 🔑

💸 Spot is a non-custodial wallet

you control your keys 🔑

you control your funds!

🏦 Robinhood, Cash App, Coinbase, Crypto.com, PayPal, Binance, Gemini, Blockfolio, Kraken... are centralized exchanges

⛔️ you DO NOT control your keys 🔑

⛔️ you DO NOT control your funds!

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