#CEXvsDEX101

CEX vs DEX 101: Which is the better choice?

First of all, if you invest or plan to invest in cryptocurrencies, understanding the difference between a centralized exchange (CEX) and a decentralized exchange (DEX) is essential.

CEX, like Binance or Coinbase, are platforms controlled by companies. Firstly, they offer customer support, high liquidity, and are easier to use. However, be aware that you give up total control of your assets, as your funds are held in custody by the platform.

On the other hand, we have DEXs, like Uniswap or PancakeSwap. They operate without intermediaries, directly between wallets, with the help of smart contracts. At first glance, they may seem more complicated, but they offer more freedom and privacy.

Above all, what matters is knowing what you are looking for. If it’s convenience and support, go for CEX. If you prefer autonomy and the security of your own assets, explore DEXs.

At the same time, nothing prevents you from using both. Buy on a CEX and then move to a DEX, for example. This way, you can take advantage of the best of both worlds.

Finally, remember: in the crypto universe, whoever has control of the keys has control of the assets. Therefore, choose wisely.