#CEXvsDEX101

🔍 #CEXvsDEX101 – The difference between Centralized Exchange (CEX) and Decentralized Exchange (DEX)

1. Key Control:

• ✅ CEX: The platform holds your private keys (Custodial).

• ✅ DEX: The user holds their private keys (Non-Custodial).

2. Management:

• ✅ CEX: Managed by a central company or institution.

• ✅ DEX: Managed through smart contracts on the blockchain.

3. Liquidity:

• ✅ CEX: Often has high liquidity.

• ✅ DEX: Generally has lower liquidity, but improves over time.

4. Account Registration and Verification (KYC):

• ✅ CEX: Requires account registration and providing information for identity verification.

• ✅ DEX: Does not require registration or identity verification in most cases.

5. Ease of Use:

• ✅ CEX: User-friendly interface suitable for new users.

• ✅ DEX: May require technical expertise and direct interaction with wallets.

6. Security:

• ✅ CEX: More susceptible to hacks due to its centralized nature.

• ✅ DEX: More secure in terms of self-control over keys.

7. Trade Speed:

• ✅ CEX: Fast order execution.

• ✅ DEX: Execution depends on blockchain speed and may be slower.

8. Fees:

• ✅ CEX: Low trading fees at times due to competition.

• ✅ DEX: High network fees at times (especially on Ethereum).

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💡 Conclusion:

• 📲 Choose CEX if you are a beginner and want ease and speed.

• 🔐 Choose DEX if you care about privacy and full control over your funds.