#CEXvsDEX101 Let's break down the key differences between CEX (Centralized Exchange) and DEX (Decentralized Exchange) to help you decide which one's right for you.

*Key Differences:*

- *Control and Security*: On a CEX, your assets are custodied by the exchange, whereas on a DEX, you have full control over your assets and connect your wallet directly to the platform.

- *Transaction Fees*: DEXs often have lower fees compared to CEXs, especially when using certain blockchain networks like Solana or Cardano. However, fees can vary depending on network congestion.

- *Trading Features*: CEXs offer advanced trading features like margin trading, stop-loss orders, and more. DEXs are catching up, with some platforms like Serum and IDEX incorporating order books.

- *Regulatory Compliance*: CEXs typically require Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, whereas DEXs often don't have these requirements.

- *Token Availability*: DEXs allow anyone to create a liquidity pool, making it easier to trade lesser-known tokens. CEXs, on the other hand, are more selective about the tokens they list.

*Choosing Between CEX and DEX:*

- *Use a CEX if*:

- You're a beginner looking for a user-friendly interface.

- You want access to advanced trading features.

- You're willing to comply with regulatory requirements for added security.

- *Use a DEX if*:

- You prioritize control over your assets and decentralization.

- You're looking for lower transaction fees.

- You want to trade tokens that might not be listed on CEXs.[¹](https://www.coingecko.com/learn/cexs-dexs-which-one-is-right)