#CEXvsDEX101 l

In the crypto world, exchanges are where buying, selling, and trading happen. But not all exchanges are built the same. Let's break down the two major types: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).

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๐Ÿ”น What is a CEX?

A Centralized Exchange is managed by a company or authority (like Binance, Coinbase, or Kraken).

Pros:

Easy-to-use interface (great for beginners)

Fast transactions

High liquidity

Customer support

Cons:

Users donโ€™t control their private keys

Can be hacked or shut down

Subject to regulations

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๐Ÿ”ธ What is a DEX?

A Decentralized Exchange operates without a central authority. Examples: Uniswap, PancakeSwap, dYdX.

Pros:

You control your crypto (non-custodial)

Privacy-friendly (no KYC in most cases)

Resistant to censorship

Cons:

Can be slower

Lower liquidity on some pairs

Complex for beginners

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โš–๏ธ CEX vs. DEX โ€“ Which is better?

Use CEX for convenience, speed, and fiat on/off ramps.

Use DEX for privacy, control, and access to newer tokens.

Smart traders often use both, depending on their needs.

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Final Tip:

Not your keys, not your coins. Always store assets securely after trading.p