When you put money into such an account, the centralized exchange owns your coins. Not your keys, not your coins. But most people prefer to keep their coins in centralized exchanges! Apparently only a few million people hold crypto off of centralized exchanges. -- When you buy cryptocurrency on an exchange, the exchange holds your private keys on your behalf. This means that technically, the cryptocurrency belongs to the exchange, and you are simply holding an IOU for that cryptocurrency.
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Yes!
And interestingly, its the same when you put money in the bank. That money now belongs to the bank and you get an IOU.
With decentralized crypto in our own wallets, we're the owner and we're in complete control. No one else is there in the middle, for better or for worse. No one can confiscate our crypto and no one can help us get it back if someone gets our keys and moves the crypto from our wallet. With freedom comes responsibility!
Yes sir ! With freedom indeed comes great responsibility!! Wise words ..