Understanding the contrast between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) is key for anyone navigating the crypto space. Here's a quick side-by-side breakdown
FeatureCEX (Centralized Exchange)DEX (Decentralized Exchange)ControlManaged by a centralized authorityFully user-controlledCustodyPlatform holds user assets (custodial)Non-custodial ā users hold their own keysEase of UseBeginner-friendly, intuitive interfacesRequires more technical know-howTransaction SpeedFast and optimizedCan be slower due to network congestionLiquidityTypically highVaries by protocol and usage volumeSecurityVulnerable if the platform is breachedSafer if smart contracts are well-designedKYC/AMLOften mandatoryGenerally not requiredExamplesBinance, Coinbase, KrakenUniswap, PancakeSwap, SushiSwap
š§ Quick Summary
CEX is easier for beginners but involves giving up custody of your assets.
DEX offers more privacy and control, but demands more technical awareness.
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