#CEXvsDEX101
Here's a short #CEXvsDEX101 summary in exactly 100 words:
**Centralized Exchanges (CEX):**
* **Like Banks:** You deposit funds; they hold custody.
* **Pros:** Easy to use, fast trades, high liquidity, fiat on/off ramps (USD, EUR), customer support.
* **Cons:** Requires KYC (ID verification), vulnerable to hacks/theft, control relinquished.
* **Examples:** Binance, Coinbase, Kraken.
**Decentralized Exchanges (DEX):**
* **Peer-to-Peer:** Trade directly from your wallet; **you hold custody.**
* **Pros:** No KYC (pseudonymous), resistant to single-point hacks, permissionless.
* **Cons:** Steeper learning curve, slower, relies on liquidity pools, gas fees, limited fiat access.
* **Examples:** Uniswap, PancakeSwap, dYdX.
**Choose CEX for ease/fiat, DEX for control/privacy. Understand the trade-offs!**