#CEXvsDEX101 #CEXvsDEX101 – Centralized vs Decentralized Exchanges

When it comes to crypto trading, understanding the difference between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) is key.

🔹 CEX (Centralized Exchange)

Examples: Binance, Coinbase, Kraken

CEXs are run by companies that act as intermediaries between buyers and sellers. They offer high liquidity, fast transactions, and customer support—but require users to trust the platform with their funds and personal data.

✅ Pros:

Easy to use

High trading volume

Fiat on-ramps

❌ Cons:

Requires KYC

Custodial (you don’t own your keys)

Risk of hacks

🔹 DEX (Decentralized Exchange)

Examples: Uniswap, PancakeSwap, dYdX

DEXs run on smart contracts and let users trade directly from their wallets. No middlemen, no KYC.

✅ Pros:

Full control of funds

Privacy-focused

Permissionless access

❌ Cons:

Lower liquidity (for some tokens)

Can be slower or costly (depending on network)

User must manage wallet security

📌 Key Takeaway:

Use CEX for convenience and high liquidity, but consider DEX if you value privacy and control. Diversifying across both can be a smart strategy!