#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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