#CEXvsDEX101 🔵 What is a CEX? (Centralized Exchange)
Examples: Binance, Coinbase, Kraken
A CEX is a trading platform run by a company or central authority.
✅ Pros:
User-friendly interface
High liquidity (easier to buy/sell)
Customer support
Fast trade execution
❌ Cons:
Requires KYC (identity verification)
You don’t control your private keys ("Not your keys, not your crypto")
Vulnerable to hacks or government shutdowns
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🟣 What is a DEX? (Decentralized Exchange)
Examples: Uniswap, PancakeSwap, SushiSwap
A DEX operates through smart contracts without a middleman.
✅ Pros:
You control your funds
No KYC required
Greater privacy
❌ Cons:
Lower liquidity (sometimes)
Less beginner-friendly
Higher risk of scams or fake tokens
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📌 Summary Table:
Feature CEX DEX
Privacy Low High
Custody Platform holds your funds You hold your funds
KYC/ID Required Yes No
Ease of Use Very easy Requires knowledge
Speed Fast Depends on network traffic
Risk of Hacks Higher (platform risk) Lower (self-custody risk)
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🔑 Key takeaway:
Use CEX for convenience and speed.
Use DEX for control and privacy.
#CEXvsDex101
