#CEXvsDEX101 Pros and Cons of CEX (Centralized Exchanges, e.g., Binance, Bybit, OKX)
✅ Pros:
- High liquidity – Large trading volumes, narrow spreads, fast transactions.
- User-friendly interface – Suitable for beginners, offers market orders, stop-losses, futures.
- Fiat payments – You can buy crypto for rubles/dollars through cards or P2P.
- Customer support – If something goes wrong, you can contact the help desk.
❌ Cons:
- Risk of hacking or bankruptcy – The history of Mt. Gox and FTX shows that CEX are not always safe.
- KYC (verification) – You need to provide personal data, which not everyone likes.
Pros and Cons of DEX (Decentralized Exchanges, e.g., Uniswap, PancakeSwap, dYdX)
✅ Pros:
- Anonymity – Does not require KYC, you can trade without a passport.
- Control over funds – Crypto is stored in your wallet (MetaMask, etc.), not on the exchange.
- Access to new tokens – Many projects launch on DEX first.
- Resistance to censorship – No one can block your account.
❌ Cons:
- High fees.
- Complexity for beginners – You need to understand wallets, slippage, MEV attacks.
- Lower liquidity – Large trades may lack volume.