#CEXvsDEX101
๐ CEX vs DEX: Which one is better for you?๐
Centralized exchanges (CEX) vs. decentralized exchanges (DEX) โ two options for trading cryptocurrencies, each with its own advantages and disadvantages. ๐๐ก
โ Advantages of CEX:
๐น Higher liquidity and faster trades โก
๐น Easy to use for beginners ๐งโ๐
๐น Better customer support ๐
โ Disadvantages of CEX:
๐น Centralization requires trust in a third party ๐
๐น Possible regulations and restrictions ๐๏ธ
โ Advantages of DEX:
๐น Greater control over your own funds ๐
๐น No need for KYC (identity verification) ๐ซ๐
๐น Direct trading between users without intermediaries ๐ค
โ Disadvantages of DEX:
๐น Less user-friendly interface โ๏ธ
๐น Lower liquidity compared to CEX ๐
๐น Potentially higher transaction fees โฌ๏ธ
๐ญ What to consider when choosing?
๐ Your level of experience
๐ฐ Need for liquidity
๐ก๏ธ Security preferences
๐ Regulations in your country
๐ Tips for beginners on DEX:
๐น Use a trusted wallet ๐ฆ
๐น Learn about "slippage" ๐
๐น Never share your seed phrase! ๐จ
