Introduction: The Gatekeepers
In a Tor connection, the middle node is just a relay. The real action happens at the ends: the Entry Node and the Exit Node. Understanding the difference between these two is vital for understanding your own digital safety.
The Exit Node Risk
The exit node is where your data finally 'unwraps' and goes out to the public internet. If you are visiting a site that isn't encrypted (HTTP), the owner of the Exit Node can see every word you type. This is why you should always use HTTPS even when you are on Tor.
Conclusion
Tor hides who you are, but the Exit Node is where your data becomes 'visible' to the web again. Always stay encrypted. See your exit node's IP here.