In the crypto world, you’ve probably heard the terms CEX and DEX when you want to trade. What’s the difference? Let’s discuss!

CEX or Centralized Exchange is a centralized trading platform like Binance, Indodax, and Bybit. This platform is very beginner-friendly because it is user-friendly and has high liquidity. This means you can buy and sell assets quickly without issues. However, the downside is that you have to entrust your assets to a third party. So, you don’t really have full control over your coins. Security risks are also a concern because if the platform gets hacked, you could lose your assets.

Meanwhile, DEX or Decentralized Exchange like Uniswap and PancakeSwap gives you full control over your assets. There are no intermediaries or third parties, so transactions are conducted directly through smart contracts on the blockchain. The advantage is that you are more anonymous and safer from the risk of third-party theft. However, DEX is usually more complicated for beginners, its liquidity can sometimes be low, and transaction fees (gas fees) can be expensive if the blockchain network is congested.

So, if you’re the type who likes convenience and speed, CEX is suitable for you. But if you’re a decentralization warrior who enjoys full control and is ready to face risks, DEX might be the choice.

In essence, choose what suits your trading style and comfort.