# FAQ

### How is Liquid different from a Centralized Exchange? (e.g. Robinhood, Coinbase) 

**Liquid is non-custodial**, meaning we never hold your funds or personal data. You trade directly from your own wallet, and your assets remain in your control at all times. This is fundamentally different from centralized exchanges like Robinhood or Coinbase, which take custody of your assets and personal information.

#### Key Differences

* **You control your assets.**\
  With Liquid, funds are stored in your wallet—not ours. There’s no single point of failure or risk of your funds being frozen, seized, or misused.
* **No KYC honeypots.**\
  Centralized exchanges store massive amounts of sensitive identity data (e.g. passports, selfies, SSNs). If that data is hacked—as has happened with platforms like Coinbase—you’re exposed. Liquid doesn’t require KYC to trade, so there’s **nothing to leak**.
* **Censorship-resistant.**\
  On Liquid, no one can freeze your account or block your trades. Everything is executed on-chain, permissionlessly.
* **No custodial blowups.**\
  With a CEX, you’re trusting them not to go bankrupt, halt withdrawals, or run fractional reserves. With Liquid, there’s **no trust required.** 


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