#CEXvsDEX101 The hashtag #CEXvsDEX101 refers to an introductory comparison between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) in the cryptocurrency world. Here's a simple breakdown to get you up to speed:

🔁 Centralized Exchange (CEX)

Examples: Binance, Coinbase, Kraken

Key Features:

Operated by a company or organization

Users deposit funds into the exchange

Fast transactions and high liquidity

Often requires KYC (Know Your Customer)

Easier for beginners

User-friendly interface

Customer support

Advanced trading tools

l

Custodial (you don’t control your private keys)

Vulnerable to hacks and downtime

Regulatory risks

---

🔄 Decentralized Exchange (DEX)

Examples: Uniswap, PancakeSwap, dYdX

Key Features:

Peer-to-peer trading via smart contracts

Non-custodial (you control your private keys)

Typically no KYC

Operates on blockchain protocols (like Ethereum)

Pros:

More privacy

Greater control over assets

Resistant to censorship

Cons:

Slower transactions, especially during congestion

Higher gas fees (especially on Ethereum)

Can be complex for new users

🆚 TL;DR: CEX vs DEX

Feature CEX DEX

Custody Exchange holds your funds You hold your funds

Privacy Low (KYC required) High (often no KYC)

Ease of Use Beginner-friendly Advanced users

Security Risk Centralized (hackable) Smart contract risks

Control Limited Full control