#CEXvsDEX101 ¡Excellent choice! **#CEXvsDEX101** is the definitive guide to understanding **centralized exchanges (CEX) vs. decentralized exchanges (DEX)**, key factors to choose based on your needs. Here’s the breakdown:
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### 🏦 **CEX (Centralized Exchange)**
*Examples: Binance, Coinbase, Kraken*
**🔐 How it works:**
- Intermediary (the platform) holds your funds and executes trades.
- You trade against the *order book* of the exchange.
**✅ Advantages:**
| **Feature** | **Benefit** |
|--------------------------|-----------------------------------------------|
| **High liquidity** | Fast orders even with large amounts. |
| **User-friendly interface** | Ideal for beginners. |
| **FIAT support** | Deposits/withdrawals in USD, EUR, etc. |
| **Advanced tools** | Margin trading, staking, futures. |
**❌ Disadvantages:**
- **Custodial risk:** *"Not your keys, not your crypto"* (e.g., bankruptcies like FTX).
- **Mandatory KYC:** Identity verification.
- **High fees:** Up to 0.1%-0.6% per trade + withdrawals.
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### 🔄 **DEX (Decentralized Exchange)**
*Examples: Uniswap (Ethereum), PancakeSwap (BSC), Raydium (Solana)*
**🔐 How it works:**
- You trade **directly from your wallet** (MetaMask, Phantom).
- No intermediaries: you use *smart contracts* and *liquidity pools* (AMM).
**✅ Advantages:**
| **Feature** | **Benefit** |
|--------------------------|-----------------------------------------------|
| **Self-custody** | You have complete control over your funds. |
| **No KYC** | Anonymity (only wallet address). |
| **Global access** | Operable in countries with restrictions. |
| **New tokens** | Immediate listings (many *gems*!). |
**❌ Disadvantages:**
- **Variable liquidity:** High *slippage* in low-traded tokens.
- **Technical complexity:** Management
