#CEXvsDEX101
Centralized Exchanges (CEXs) like Binance or Coinbase are run by companies. You deposit funds into their platform, and they manage trades. They're user-friendly, offer high liquidity, and support fiat purchases. However, they require KYC, can freeze assets, and you're trusting them with your crypto.
Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap run on smart contracts with no central authority. You trade directly from your wallet, keeping full control of your assets. DEXs offer privacy and are censorship-resistant, but can be harder to use and may have lower liquidity or smart contract risks.
Key Difference:
CEX = Easy to use, but you give up control.
DEX = Full control, but needs more crypto knowledge.
Rule of thumb: “Not your keys, not your coins.”
Choose based on your need for convenience vs. control.
