#CEXvsDEX101
๐ฐ Crypto Trading Basics
Choosing between Centralized (CEX) and Decentralized (DEX) exchanges is essential. Each has trade-offs in security, user experience, liquidity, and control.
๐ง Key Concepts:
Trading Types:
Spot โ Instant buying/selling
Margin โ Trade with borrowed funds
Futures โ Contracts to trade at a future price
Exchanges:
CEX (e.g., Binance) โ Easy to use, high liquidity
DEX (e.g., Uniswap) โ More private and decentralized
Order Types:
Market, Limit, Stop-Loss, Take-Profit โ Tools to control trade execution
Liquidity:
High = fast execution, tighter spreads
Low = slippage, less reliable pricing
Trading Pairs:
Select based on volume, volatility, and your strategy
Security:
Hot Wallets โ Online, convenient, but riskier
Cold Wallets โ Offline, more secure
Fees:
Be aware of trading, withdrawal, and network fees.
Optimize by using limit orders and trading at off-peak times
Mistakes to Avoid:
Over-leveraging
Emotional, FOMO-based decisions
Ignoring risk management
Charts:
Use candlesticks, trends, and support/resistance to plan entries and exits
Tools:
RSI โ Measures overbought/oversold
MACD โ Tracks momentum shifts
Moving Averages โ Identify trend direction
