#CEXvsDEX101 If you are just starting to understand cryptocurrencies, one of the first questions you will face is: where to trade? The choice usually comes down to two types of platforms: centralized exchanges (CEX) and decentralized exchanges (DEX). In this article, we will look at what they are, how they differ, and what their advantages and disadvantages are.

What is CEX?

CEX (Centralized Exchange) is a centralized cryptocurrency exchange managed by a company. It acts as an intermediary between buyers and sellers. Examples of popular CEXs: Binance, Bybit, OKX, KuCoin, Bitget, Gate.io, and others.

How CEX Works:

• You create an account and go through verification (KYC).

• You deposit fiat money or cryptocurrencies.

• Trade through the order book — the exchange finds counterparts for you.

• All transactions are processed within the exchange's system.

Advantages of CEX:

✔ Convenient interface

✔ High liquidity and transaction speed

✔ Support for multiple assets

✔ Possibility of fiat deposit/withdrawal

✔ Support and technical assistance

Disadvantages of CEX:

✖ Centralization = third-party control

✖ You do not own your funds (not your keys — not your crypto)

✖ Risks of hacks, account freezing, or scams by the exchange

What is DEX?

DEX (Decentralized Exchange) is a decentralized exchange that operates through smart contracts. It does not require registration or intermediaries: you connect to the platform directly through your cryptocurrency wallet. Examples: Uniswap, PancakeSwap, 1inch, dYdX, SushiSwap.