#CEXvsDEX101

The main difference between CEX (Centralized Exchange) and DEX (Decentralized Exchange) in the world of cryptocurrency refers to the nature of control, custody, security, and privacy. Here is a breakdown of the key differences:

CEX (Centralized Exchange):

* Control and Custody: Managed by a company or centralized entity. When using a CEX, you deposit your funds into the exchange, meaning the exchange retains control of your private keys and assets. You trust the exchange to safeguard your funds.

* Intermediary: Acts as a third-party intermediary between buyers and sellers.

* Ease of Use: Typically has user-friendly interfaces suitable for beginners, providing features such as customer support and account recovery services.

* Liquidity: Generally has higher liquidity, allowing for larger and faster transactions at more stable prices.

* Fiat Support: Usually supports deposits and withdrawals in fiat currencies (such as the US dollar and euro), making it easier for new users to enter the world of cryptocurrency.

* Privacy and Compliance: Typically requires Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, meaning you must provide personal identification information. Subject to government regulations.

* Trading Fees: Trading fees may be higher compared to DEXs, but they often handle network fees (gas fees) on behalf of the user.

* Security: Although they implement strong security measures,