#CEXvsDEX101 Centralized (CEX) and decentralized (DEX) exchanges have their pros and cons, and the choice depends on the trader's priorities.
Advantages of centralized exchanges (CEX):
Ease of use and a user-friendly interface for beginners.
Wide functionality: margin trading, stop-losses, various payment methods.
Availability of customer support and the possibility of account recovery through verification.
High liquidity and fast transactions.
Cons of CEX:
Registration and KYC are required, which reduces anonymity.
User funds are stored on the exchange, which creates a risk of loss during hacks or fraud.
Account blocks and access restrictions are possible by the exchange or regulators' decision.
Advantages of decentralized exchanges (DEX):
Full control over your funds — assets are stored in the user's wallet, not on the exchange.
Anonymity and no need for registration and KYC.
Lack of intermediaries and minimization of manipulation and intervention risks.
Higher security against hacking attacks due to a distributed structure.
Ability to trade unquoted tokens that are not available on CEX.
Cons of DEX:
Limited functionality (no margin trading, stop-losses, etc.).
Low liquidity and possible slippage during large trades.
Difficulty for beginners and lack of customer support.
Network fees can be high during blockchain congestion.
Risks due to errors in smart contracts and inability to cancel erroneous transactions.
Conclusion:
If simplicity, wide functionality, and high liquidity are important — centralized exchanges are better. If priority is security, anonymity, and control over funds — decentralized exchanges are preferable. Many traders use both types depending on their tasks.
