#CEXvsDEX101

CEX vs. DEX: Key Differences Explained**

When trading cryptocurrencies, you’ll encounter two main types of exchanges: **Centralized Exchanges (CEX)** and **Decentralized Exchanges (DEX)**. Here’s a quick breakdown:

### **Centralized Exchanges (CEX)**

- **Examples:** Binance, Coinbase, Kraken

- **How it Works:** Operated by a company that controls users’ funds.

- **Pros:**

✅ High liquidity & fast trades

✅ User-friendly (great for beginners)

✅ Supports fiat deposits (USD, EUR, etc.)

- **Cons:**

❌ Requires KYC (identity verification)

❌ Risk of hacks or shutdowns

❌ Custodial (you don’t fully contr

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