#CEXvsDEX101

#CEXvsDEX101: Centralized Exchanges (CEX) are like traditional banks, holding your crypto and requiring KYC (identity verification). They offer user-friendliness, high liquidity, and customer support. However, you sacrifice control (not your keys, not your crypto) and face potential hacking risks.

Decentralized Exchanges (DEX) are peer-to-peer, operating on smart contracts with no intermediary. You retain full control of your funds and enjoy greater privacy. While offering access to newer tokens and censorship resistance, DEXs can be less user-friendly, have lower liquidity for some assets, and involve network (gas) fees. The choice depends on your priorities: convenience vs. control.