#CEXvsDEX101

CEX vs DEX – What is the Difference?

Whether you are new to the world of cryptocurrencies or reviewing the basics, understanding Centralized Exchanges (CEX) versus Decentralized Exchanges (DEX) is essential for navigating the market.

Here’s a quick overview:

🔹 Centralized Exchange (CEX)

Examples: Binance, Coinbase, KuCoin

✅ Easy to use

✅ High liquidity and fast trades

✅ Customer support

❌ You do not own your private keys

❌ Subject to regulations and possible shutdowns

🔸 Decentralized Exchange (DEX)

Examples: Uniswap, PancakeSwap, dYdX

✅ You control your funds

✅ Permissionless – trade directly from your wallet

✅ Lower risk of centralized attacks

❌ Less suitable for beginners

❌ May have lower liquidity and slower execution

🔐 CEX = Convenience and Speed

🌐 DEX = Control and Privacy