#CEXvsDEX101

Here's a simple 101 breakdown of CEX (Centralized Exchange) vs. DEX (Decentralized Exchange):

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🔵 CEX: Centralized Exchange

Examples: Binance, Coinbase, Kraken

How it works:

Operated by a company or central authority.

Users deposit funds into the platform.

The exchange matches buyers/sellers internally.

Pros:

🔒 Easier security for beginners (custodial wallets).

💳 Can support fiat (USD, EUR) transactions.

⚡ Fast trades and high liquidity.

📞 Customer support available.

Cons:

👁️ Controlled by the company — less privacy.

🏦 Custodial — you don’t hold your private keys.

🚫 Can freeze accounts or block withdrawals.

🎯 Hacker targets (due to central storage).

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🟣 DEX: Decentralized Exchange

Examples: Uniswap, PancakeSwap, SushiSwap

How it works:

No central authority. Smart contracts match trades on-chain.

Users keep control of their private keys and funds.

Pros:

🔐 You control your crypto (non-custodial).

🕵️ More privacy — no KYC usually.

🚪Open to anyone with a crypto wallet.

🔄 Transparent — trades happen on-chain.

Cons:

🐢 Slower, depending on network congestion.

🤹 More complex UI for beginners.

💧 Lower liquidity for some tokens.

🛠️ No customer support — you’re on your own.