#CEXvsDEX101

### **CEX vs. DEX: Key Differences**

#### **Centralized Exchange (CEX)**

- **Role:** Acts as an intermediary between buyers and sellers.

- **Examples:** Binance, Coinbase, Kraken

- **Pros:**

- User-friendly interface

- High liquidity & fast transactions

- Advanced trading features (e.g., margin, futures)

- **Cons:**

- Security risks (hacks, custodial risk)

- Potential censorship or frozen accounts

- Reliance on a central authority

#### **Decentralized Exchange (DEX)**

- **Role:** Enables peer-to-peer trading without intermediaries.

- **Examples:** Uniswap, PancakeSwap, dYdX

- **Pros:**

- Enhanced security (non-custodial)

- Transparency (on-chain transactions)

- Greater user autonomy

- **Cons:**

- Steeper learning curve

- Lower liquidity for some assets

- Potential for high slippage

### **Which One to Choose?**

Your preference depends on what matters most:

- **CEX** → Best for beginners, high liquidity, and convenience.

- **DEX** → Ideal for privacy, security, and full asset control.

Would you like a deeper comparison on any aspect?