#CEXvsDEX101 CEX vs DEX 101: Understanding Crypto Exchanges

Before you start trading crypto, it's key to know the difference between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX):

🏢 CEX – Centralized Exchange

Examples: Binance, Coinbase, Kraken.

You trade through a company that manages your funds and order book.

Pros:

High liquidity

User-friendly

Customer support

Cons:

You don’t fully control your crypto (they hold your keys)

Can be hacked or face regulations

🌐 DEX – Decentralized Exchange

Examples: Uniswap, PancakeSwap, dYdX.

You trade peer-to-peer using smart contracts. No middleman.

Pros:

Full control over your funds

Greater privacy, no KYC in many cases

Open 24/7 with global access

Cons:

Lower liquidity for some tokens

More technical, less beginner-friendly

No customer support if something goes wrong

💡 CEX is like a bank; DEX is like cash.

Both have their place—choose based on what you value more: convenience or control.