#CEXvsDEX101
🔄 Centralized Exchange (CEX) vs Decentralized Exchange (DEX): 101
FeatureCEX (Centralized Exchange)DEX (Decentralized Exchange)
ControlControlled by a company (e.g., Binance, Coinbase)Run by smart contracts; no central authorityCustodyExchange holds your assets (custodial)You hold your private keys (non-custodial)User ExperienceSimple UI, fast transactions, fiat on-rampsMore complex, requires crypto wallets like MetaMaskSecurity RisksHacks target the exchange (e.g., Mt. Gox, FTX)Smart contract bugs or user error risksLiquidityTypically higher liquidityLower liquidity, especially for small-cap tokensSpeedFast order matching via internal systemsSlower due to blockchain confirmation timesFeesTrading fees vary; sometimes higherLower fees but you pay gas (network) feesPrivacyKYC/AML required (identity checks)Often anonymous/no KYC (depends on the DEX)RegulationHeavily regulatedOften in legal gray zones or lightly regulatedToken AccessLimited to tokens listed by the platformAccess to a wide range, including new/emerging tokens
🏛️ Examples
CEX: Binance, Coinbase, Kraken, Bitfinex
