CEX vs DEX 101: What to choose?

#CEXvsDEX101 CEX vs DEX 101: What to choose?

In the world of cryptocurrencies, users have two main trading methods: **centralized exchanges (CEX)** and **decentralized exchanges (DEX)**. Both options have their features, advantages, and disadvantages.

CEX (Centralized Exchange).

These are platforms managed by a company that controls all operations. The most well-known examples: Binance, Coinbase, Kraken.

✅ Pros:

- High liquidity and speed of order execution

- Ease of use, user-friendly interface

- Additional services: staking, futures, lending

❌ Cons:

- Requires trust in the company (risk of hacking or bankruptcy)

- Mandatory KYC (loss of anonymity)

DEX (Decentralized Exchange).

Exchanges without centralized management, where trading is conducted directly between users through smart contracts. Examples: Uniswap, PancakeSwap, DYDX.

✅ Pros:

- Anonymity (no KYC)

- Absence of intermediaries and control over funds

- Access to new tokens without censorship

❌ Cons:

- Lower liquidity and speed of transactions

- More complex interface for beginners

- Risks of smart contract vulnerabilities

What to choose?

If convenience and security are important to you – **CEX**. If you value decentralization and control over your own funds – **DEX**.

💡 Ideal scenario? Using both options depending on needs and strategy!