#CEXvsDEX101 : What is the difference between CEX and DEX?
Traders often choose: centralized exchange (CEX) or decentralized exchange (DEX). Both options have their pros and cons 👇
🏛 CEX (Centralized Exchange) — Binance, Bybit, OKX, Kraken
🔹 The exchange is managed by a company
🔹 You create an account, go through verification (KYC)
🔹 Your funds are stored on the exchange
🔹 Convenient interface, high liquidity
🔹 Access to futures, staking, launchpads, etc.
❗️ Cons:
— The exchange can freeze your account
— Risk of platform hacking
— Less anonymity
🌐 DEX (Decentralized Exchange) — Uniswap, PancakeSwap, 1inch
🔹 No one manages the exchange — it’s smart contracts
🔹 No registration or KYC required
🔹 Your funds are only in your wallet (Metamask, etc.)
🔹 Complete decentralization and control
❗️ Cons:
— Less liquidity
— Higher fees on networks like Ethereum
— No support or technical assistance if something goes wrong
🔐 CEX = convenient, but centralized
🔓 DEX = freedom, but more responsibility
❓ What do you use more often — CEX or DEX?
