There are two ways to store cryptocurrencies—you can either buy from an exchange such as Binance or FTX and store them in their custodial wallets or you can buy from a platform like crypto.com or Metamask, which provide you with a digital wallet address on the blockchain, a public key and a private key. When you buy crypto from an exchange, your currency is stored in the specific platform's account and when you make a payment to someone, it goes through the exchange and is, therefore, traceable. This type of wallet is known as a custodial wallet. This system is Centralized Finance (CeFi), and is similar to the one followed by traditional banks. When you store crypto in a digital wallet, you get a wallet address and can make person-to-person transactions, without the currency going through any exchange. This system is known as Decentralised Finance (DeFi).