#CEXvsDEX101

#CEXvsDEX101 is a shorthand hashtag typically used in crypto-related discussions to highlight the basic differences between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Here's a simple breakdown:

šŸ¦ Centralized Exchange (CEX)

Examples: Binance, Coinbase, Kraken

Pros:

Easy to use (user-friendly interfaces)

High liquidity and fast transactions

Customer support

Fiat on/off ramps

Cons:

Requires KYC (Know Your Customer)

You donā€™t control your private keys ("Not your keys, not your crypto")

Vulnerable to hacks or regulatory shutdowns

šŸŒ Decentralized Exchange (DEX)

Examples: Uniswap, PancakeSwap, dYdX

Pros:

No KYC (pseudonymous trading)

You control your funds (non-custodial)

Open and transparent (on-chain transactions)

Cons:

More complex to use (wallet connection needed)

Lower liquidity (for smaller tokens)

Slower and more expensive depending on network congestion (e.g., on Ethereum)

šŸ§  TL;DR:

CEX = Convenience & speed, but trust the platform

DEX = Privacy & control, but more DIY