#CEXvsDEX101

🏛️ CEX vs DEX 101: Understand Clearly to Trade Smarter

In the crypto world, you will have to choose between CEX (Centralized Exchange) and DEX (Decentralized Exchange). Each type has its own strengths and weaknesses, which greatly affect how you protect your assets and earn profits.

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🔹 What is CEX?

CEX like Binance, OKX, Bybit are exchanges operated by intermediaries. Users deposit money into the exchange and trade through internal accounts.

Advantages:

– Fast transaction speed

– High liquidity

– User-friendly interface

– There is a customer support team

Disadvantages:

– You do not actually hold the assets (the exchange holds them for you)

– There is a risk if the exchange gets hacked or your account gets frozen

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🔸 What is DEX?

DEX like Uniswap, PancakeSwap, dYdX operate without intermediaries. You hold your own wallet, connect directly to swap or trade through smart contracts.

Advantages:

– Full control over your assets

– No KYC required

– Anonymous trading, not controlled

Disadvantages:

– Interface can be difficult for newcomers

– High gas fees during network congestion

– Risk of encountering scam projects or malware

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⚖️ Which one should you choose?

If you are new and prioritize convenience, use CEX. If you have experience and want absolute control over your assets, try DEX. If you are a professional trader, it’s best to combine both – leveraging CEX liquidity and early opportunities from DEX.

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✅ Safety suggestion:

Whether you choose CEX or DEX, always enable 2-factor authentication (2FA), prioritize cold wallets, and only trade with projects that have clear audits.