#CEXvsDEX101
đ CEX (Centralized Exchange)
â Advantages :
Easy to use: user-friendly interfaces for beginners (#BinanceâŠ).
High liquidity: higher trading volume = fast order execution.
Advanced features: margins, futures, stop-loss, staking, etc.
Customer support: assistance in case of problems.
âïž Disadvantages :
Centralized control: the exchange holds your private keys.
Risk of hacking: CEXs are frequent targets.
Mandatory KYC/AML: less privacy.
Risk of freezing/suspended withdrawal (e.g., FTX).
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đ DEX (Decentralized Exchange)
â Advantages :
Total control of funds: "Not your keys, not your coins" does not apply here.
No KYC: more privacy.
Open-source & permissionless: accessible to everyone, without central authorization.
Rapid innovation: many DeFi projects listed before CEXs.
âïž Disadvantages :
Less intuitive: interfaces can be technical (Uniswap, PancakeSwap, dYdXâŠ).
Less liquidity: can lead to slippage on large volumes.
No support: in case of error, itâs irreversible.
Risk of rug pulls/scams: unverified tokens are more frequent.
đ
âïž Conclusion :
Beginner or active trader? Prefer a CEX.
Decentralization, privacy, and total control? Choose a DEX.
Many users combine both, depending on their needs (quick trading on CEX, long-term investment on DEX).
