#CEXvsDEX101

🏦 #CEXvsDEX101: What’s the Difference Between CEX and DEX?

When trading crypto, you’ll come across two main types of exchanges: Centralized (CEX) and Decentralized (DEX). Understanding the difference is crucial for managing risk and staying in control of your assets.

🔐 CEX (Centralized Exchange)

Examples: Binance, Coinbase, Kraken

Custodial: Platform holds your funds

Easier UI & higher liquidity

KYC/AML required

Faster transactions

✅ Great for beginners

🌐 DEX (Decentralized Exchange)

Examples: Uniswap, PancakeSwap, dYdX

Non-custodial: You control your keys

No sign-up, no KYC

More privacy, but often lower liquidity

Smart contracts handle trades

✅ Great for DeFi natives

💡 Pro Tip: Use a CEX for convenience and fiat on/off ramps. Use a DEX for true decentralization and DeFi access.