#CEXvsDEX101

CEX vs DEX 101

(A Beginner's Guide to Centralized and Decentralized Exchanges)

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🔹 What Is a CEX (Centralized Exchange)?

A Centralized Exchange is a platform operated by a company that acts as an intermediary between buyers and sellers of cryptocurrencies.

✅ Pros:

User-friendly: Easy UI, ideal for beginners.

High liquidity: Faster trades with less slippage.

Customer support: Help desk for lost passwords, frozen accounts, etc.

Fiat onboarding: Supports debit/credit cards and bank transfers.

❌ Cons:

Custodial: Exchange holds your funds (not your keys, not your coins).

Security risks: Vulnerable to hacks and insider theft.

KYC/AML: Requires personal info and ID verification.

🔥 Popular CEXs:

Binance

Coinbase

Kraken

OKX

Bybit

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🔸 What Is a DEX (Decentralized Exchange)?

A Decentralized Exchange is a peer-to-peer marketplace that operates on smart contracts, allowing users to trade directly from their wallets.

✅ Pros:

Non-custodial: You keep control of your private keys.

Permissionless: No KYC or account setup required.

Global & open: Anyone with a crypto wallet can trade.

❌ Cons:

Lower liquidity: Especially for smaller tokens.

UX complexity: Interfaces can be tricky for beginners.

No customer support: If you lose funds or make a mistake, you're on your own.

🔥 Popular DEXs:

Uniswap (Ethereum)

PancakeSwap (BN