#CEXvsDEX101 The difference between CEX (Centralized Exchanges) and DEX (Decentralized Exchanges). A CEX is like a crypto bank, a platform operated by a company (like Binance or Coinbase) that holds your funds and facilitates transactions. On the other hand, a DEX is a marketplace that operates directly on the blockchain, where you maintain full control of your assets in your own wallet.

My experience tells me that CEXs are ideal for beginners due to their ease of use, high liquidity, and better customer support. However, their disadvantage lies in the fact that you do not have control over your funds (you trust a third party) and they often require identity verification (KYC), sacrificing privacy. In contrast, DEXs offer complete control of your funds and greater privacy by not requiring KYC, making them ideal for niche tokens or DeFi. But they are more complex, with lower liquidity and sometimes high gas fees.

Personally, I prefer a CEX to buy crypto directly with fiat money or for high-volume trades that demand immediate liquidity. Conversely, I turn to a DEX when I seek privacy, to explore new projects, or to interact with DeFi protocols, where total control of my assets is paramount. When choosing, I always consider security (custody vs. self-custody), ease of use, the liquidity necessary for my transactions, and the level of privacy I desire.

For someone using a DEX for the first time, my main advice is to be extremely cautious. Start with small amounts, thoroughly research the platform and the token, and above all, understand how gas fees work. It's vital to verify the addresses of smart contracts and, most importantly, never share your seed phrase and keep it in a very safe place!