#CEXvsDEX101

Confused between CEX and DEX when it comes to crypto trading? Let’s simplify it!

🔹 CEX (Centralized Exchange) – Platforms like Binance, Coinbase, and Kraken fall under this. These are run by companies that act as intermediaries. You create an account, deposit funds, and they handle the rest. CEXs offer better liquidity, user-friendly interfaces, faster transactions, and strong customer support. However, your funds are stored on the platform, so there’s some risk if the exchange gets hacked or shuts down.

🔸 DEX (Decentralized Exchange) – Think Uniswap, PancakeSwap, or dYdX. These operate without a central authority, allowing peer-to-peer trading through smart contracts. You stay in full control of your crypto. It’s more private and secure, but might be harder for beginners and usually has lower liquidity.