#CEXvsDEX101
📚 CEX vs DEX 101: What's the Difference? 🔄
When diving into crypto, you'll hear about CEXs (Centralized Exchanges) and DEXs (Decentralized Exchanges) — but what sets them apart?
🔐 CEX (Centralized Exchange)
➡ Examples: Binance, Coinbase, Kraken
➡ Features:
Operated by a company or organization.
Requires KYC (identity verification).
User-friendly interfaces.
Fast transactions with deep liquidity.
✅ Pros:
Easy for beginners.
High liquidity & advanced trading tools.
Customer support.
❌ Cons:
You don't fully control your funds.
Vulnerable to hacks or regulatory shutdowns.
🌐 DEX (Decentralized Exchange)
➡ Examples: Uniswap, PancakeSwap, dYdX
➡ Features:
Peer-to-peer trading via smart contracts.
No KYC required.
You trade directly from your wallet.
✅ Pros:
Full custody of your crypto.
More privacy and censorship resistance.
Access to new or small-cap tokens.
❌ Cons:
Less user-friendly.
Lower liquidity (for some tokens).
Slower support, more risk if you're inexperienced.
🧠 TL;DR:
Use a CEX like Binance for speed, ease, and security.
Try a DEX for control, privacy, and early access to tokens.
Many savvy users use both depending on the need.
⚠️ Disclaimer: Crypto trading carries risk. Always DYOR and never invest more than you can afford to lose.
