#CEXvsDEX101🔥 $
When I first started trading crypto, I stuck with CEXs. The user-friendly interfaces, high liquidity, and fiat on-ramps make it an easy entry point all the time. But as I got deeper into the space, I realized that relying solely on centralized exchanges can limit your control over your assets.
I have created a list of pros and cons for both CEXs and DEXs.
CEX pros:
1. Easy to use, especially for beginners
2. High liquidity
3. Fast execution
4. Customer support (most of the time).
CEX cons:
1. "Not your keys, not your coins"
2. Regulatory risks
3. Occasional withdrawal freezes
4. Prone to hacks despite their best efforts.
DEX pros:
1. True ownership of assets
2. More privacy
3. Fewer KYC requirements
4. Access to newer or less-known tokens early, which can be very useful and lucrative.
DEX cons:
1. Higher learning curve
2. Lower liquidity on certain pairs.
Personally, I use CEXs for large trades and fiat transactions, and DEXs when I want full control or access to early DeFi opportunities. My rule of thumb: If I'm not actively trading it, it belongs in my self-custody wallet.