🚀 CEX vs DEX 101: 5 Very Important Key Differences You Must Know 🤝
🧭 Navigating the crypto world starts with understanding where to trade. The two main options are Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Here's a quick breakdown of their key differences :-
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1. Custody of Funds --->>>
• CEX : You deposit your crypto into the exchange’s wallet.
• DEX : You keep full control of your assets in your own wallet.
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2. Identity Verification (KYC) --->>>
• CEX : Most require Know Your Customer (KYC) checks.
• DEX : Usually no KYC needed; trades can be anonymous.
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3. Speed and Liquidity --->>>
• CEX : Offers faster transactions with high liquidity.
• DEX : Slower due to blockchain processes and may have lower liquidity.
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4. User Experience --->>>
• CEX : Beginner-friendly with customer support and intuitive interfaces.
• DEX: More technical and less guidance, ideal for experienced users.
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5. Control and Trust --->>>
• CEX : You trust a third party to manage your funds.
• DEX : No intermediaries; you interact directly with smart contracts.
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"Conclusion" ~~~
🏬 Centralized exchanges are great for speed, ease of use, and support. Decentralized exchanges offer greater privacy, autonomy, and security. The right choice depends on your experience level and your priorities.
🚨 Remember : Not your keys, not your coins. Always do your own research before trading.