#CEXvsDEX101

Here are 10 facts comparing CeX vs DEX

1. Control

CEX: Operated by a centralized company

DEX: Operated via smart contracts; users control their own funds.

2. Custody👜

CEX: users crypto in custodial wallets.

DEX: Non-custodial; users trade directly from their wallets.

3. KYC🪪

CEX: Requires identity verification KYC.

DEX: Typically doesn't require KYC.

4. Liquidity🏊

CEX: Generally higher liquidity and faster order matching.

DEX: May have lower liquidity.

5. Security Risks🔐

CEX: Prone to hacking due to centralized wallets.

DEX: Safer in terms of custody but vulnerable to smart contract bugs.

6. Ease of Use🎮

CEX: More user-friendly; supports fiat and margin trading.

DEX: Requires understanding of crypto wallets and blockchain.

7. Speed🦸

CEX: Faster transactions due to off-chain processing.

DEX: Slower due to on-chain execution.

8. Fees💲

CEX: May charge trading, deposit, and withdrawal fees.

DEX: Lower trading fees but includes blockchain gas costs.

9. Token Availability🪙

CEX: Lists selected token

DEX: Allows trading of virtually any token, including new ones.

10. Examples💯

CEX: Binance,Kraken etc

DEX: Uniswap,PancakeSwap etc