#CEXvsDEX101
CEX vs DEX 101 means "The fundamental difference between Centralized Exchange (CEX) and Decentralized Exchange (DEX)". Let's understand it in a simple and easy way:
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🌐 1. What is CEX (Centralized Exchange)?
This is an exchange that is controlled by an organization or company, such as:
Binance
Coinbase
Kraken
✅ Advantages:
User-friendly
Trades quickly
Customer support available
Buying and selling possible with Fiat (PKR, USD)
❌ Disadvantages:
Your funds are under the control of the exchange (Not your keys, not your coins)
Risk of hacking
KYC (Know Your Customer) is mandatory
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🌀 2. What is DEX (Decentralized Exchange)?
This is an exchange that is not under the control of any single organization, but operates through automated code on the blockchain, such as:
Uniswap (Ethereum)
PancakeSwap (BNB Chain)
dYdX
✅ Advantages:
Your funds are under your control (in your own wallet)
No KYC required
More privacy
❌ Disadvantages:
User interface can be a bit complicated
Trades may be slightly slower or more expensive (gas fees)
Buying with Fiat is not possible
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🔍 Summary (Comparison Table):
Aspect CEX DEX
Control With the company In your own hands
Is KYC mandatory? Yes No
User-friendly? Yes Relatively less
Security Depends on the organization Depends on yourself
Fiat support? Yes No
