#CEXvsDEX101
What is the difference between centralized and decentralized trading!!
I will try to simply explain it to you 👇🏻
Do you want to buy cryptocurrencies? You need to know the difference between centralized exchanges (CEX) and decentralized exchanges (DEX) to choose the right one!
✅ Centralized exchanges (CEX) like Binance and Coinbase:
- Easy to use, with an internal wallet.
- They have Know Your Customer (KYC) requirements.
- Fast execution, but the bank can stop your transfers.
- The bank behind it can intervene in your funds!
✅ Decentralized exchanges (DEX) like Uniswap and PancakeSwap:
- No ID needed, just a wallet like MetaMask.
- Full control over your funds, nobody can freeze them.
- Transaction fees might be a bit higher.
- If you forget your password, your funds are gone forever!
In summary:
- If you are a beginner and want something easy and simple... CEX.
- If you want privacy and full control... DEX.
*** I wish everyone good luck ***
