#CEXvsDEX101 Sure, here’s a simplified and clear explanation of the difference between CEX and DEX without tables:
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✅ First: What is CEX?
CEX stands for Centralized Exchange, which means "Centralized Trading Platform".
These platforms are managed by a company or institution, such as Binance or Coinbase.
When you register on them, you create an account, and you may need to verify your identity (KYC).
When you trade on CEX, your funds are temporarily under the platform's control, meaning you do not own the private keys to your wallet.
Advantages:
Easy to use, especially for beginners.
Very fast in executing orders.
Provides technical support and a wide variety of currencies.
Disadvantages:
You need to trust the owning company.
Subject to hacking or government freezing.
You do not have full control over your funds.
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✅ Second: What is DEX?
DEX stands for Decentralized Exchange, which means "Decentralized Trading Platform".
These are platforms not managed by a company, but operate via smart contracts on the blockchain.
You do not need to register or provide your data, just connect your wallet (like MetaMask) and start trading.
In DEX, you have full control over your funds, and you execute trades directly from your wallet.
Advantages:
No need for an account or identity verification.
More privacy and control over funds.
Allows trading
