#CEXvsDEX101 CEX vs. DEX: Quick Guide

**Centralized Exchange (CEX)** (e.g., Binance, Coinbase):

- **What**: Platform run by a company, holds your funds.

- **Pros**: High liquidity, fast trades, beginner-friendly, fiat support, advanced tools (margin, futures).

- **Cons**: Requires KYC, less privacy, risk of hacks or frozen accounts.

- **Best for**: New traders, high-volume pairs (e.g., BTC/USDT), fiat on-ramps.

**Decentralized Exchange (DEX)** (e.g., Uniswap, PancakeSwap):

- **What**: Peer-to-peer trading via blockchain, you control funds.

- **Pros**: Privacy (no KYC), non-custodial, access to niche tokens, censorship-resistant.

- **Cons**: Lower liquidity, slower trades, complex for beginners, gas fees.

- **Best for**: Privacy-focused traders, new DeFi tokens, avoiding centralized risks.

**Key Difference**:

- **CEX**: Convenient but centralized; you trust the platform.

- **DEX**: Decentralized but trickier; you control your wallet.

**Choose**:

- CEX for ease and liquidity.

- DEX for privacy and control.