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Cryptocurrency Exchange

A business that allows customers to trade cryptocurrencies or digital tokens for other assets, such as conventional fiat (fiat-to-crypto and vice-versa) and/or other digital currencies/tokens (crypto-to-crypto). Exchanges can be classified into: Centralized cryptocurrency exchanges, which are operated by a third party and Decentralized cryptocurrency exchanges (DEXs), designed in a manner that no third party is…

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Cryptography

Cryptography is the encryption mechanism used to secure cryptocurrency. This encryption is based off of algorithms that make sensitive information difficult to decipher. There are two types of cryptography: Symmetric cryptography is when encrypting and decrypting functions use the same key, whereas asymmetric cryptography utilizes two different keys.

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Custodial vs Non Custodial Wallet

The difference is who controls the private key.  In custodial wallets the private key is held a third party (i.e. an exchange), while in non-custodial wallets the private key is held by the owner of the wallet. Whoever controls the private key, also controls the funds. Losing the private key, usually leads to losing the funds. 

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Custodial Wallets

In custodial wallets the private key is held a third party (i.e. an exchange), thus having full access to the funds. 

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Dash (DASH)

What is DASH? Dash is an open source altcoin that was created from a fork in the Bitcoin Protocol. Dash was formerly known as Xcoin and Darkcoin, but rebranded itself as Dash (a portmanteau of “digital cash”) in 2015 after Darkcoin become associated with its prevalence amongst dark marketplaces. Dash runs on a proof of work…

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Decentralized Exchange (DEX)

DEX or Decentralized Exchange is a type of cryptocurrency exchange that operates in a decentralized manner and enables peer-to-peer crypto trading. Because DEX’s are a type of DeFi application, they typically lack any KYC process. While the operations of Decentralized exchanges are decentralized, the scale of the governance decentralization varies greatly some operators are anonymous…

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Decentralized Finance (DeFi)

DeFi or Decentralized Finance is smart contract-based finance. The financial products, service, and instruments are implemented in code and made up of independent parts that are brought together without the use of traditional intermediaries like banks. DeFi structures are financial in nature and take on the functions and characteristics of regulated activities including operating as…

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DeFi

Decentralized Finance (DeFi) removes financial institutions or other centralized third-party institutions from a financial services platform. It would allow peer-to-peer interaction without those centralized intermediaries.

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Digital Asset Customer (DAC)

A Digital Asset Customer is a Digital Asset Entity that uses the services of a bank or other formal financial institution. DAC was first used to describe a broad grouping of cryptocurrency-based customers in the U.S. Department of the Treasury’s OCC enforcement action against M.Y. Safra Bank in early 2020. Alternative names include Virtual Asset…

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Digital Asset Entity

A Digital Asset Entity is an umbrella term for a range of businesses built on cryptocurrency transactions. Digital Asset Entities include Virtual Asset Service Providers (VASPs) and cryptocurrency ATMs, which are financial institutions in their own right, in addition to gambling sites, incubators, and other entities which use crypto but are not classed as financial…

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