#CEXvsDEX101

CEXvsDEX101: Understanding the Differences

CEX (centralized exchange) provides high liquidity, fast transaction speeds, and good customer support. However, users must trust and relinquish control of their assets to a third party, which minimizes risk.

In contrast, DEX (decentralized exchange) allows direct trading between users' wallets, increasing privacy and control, often with higher fees and less friendliness for newcomers. There is a high profit potential if one can seize opportunities well, but it comes with very high risks. And of course, the risk-to-reward ratio will be greater.

Understanding the strengths and weaknesses helps you choose the right platform that suits your needs.