#OrderTypes101 # CEXs vs. DEXs: A Simplified Guide

When trading cryptocurrencies, there are two main types of platforms: **Centralized Exchanges (CEXs)** and **Decentralized Exchanges (DEXs)**.

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### Centralized Exchanges (CEXs)

These are platforms managed by companies, like banks.

* **Advantages:**

* **User-friendly:** Their interfaces are simple and suitable for beginners, with customer support.

* **High liquidity:** Easy execution of large trades.

* **Supports fiat currencies:** You can deposit and withdraw money in dollars or euros.

* **Disadvantages:**

* **Control over your money:** The platform holds your assets, not you.

* **Hacking risks:** Being centralized, they are a target for hackers.

* **Requires identity verification (KYC):** They may ask you to verify your identity.

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### Decentralized Exchanges (DEXs)

They operate without a central intermediary; transactions occur directly between users.

* **Advantages:**

* **Full control over your funds:** You own the keys to your wallet.