#CEXvsDEX101 CEX and DEX comparison
Centralized exchanges (CEX): serve as the digital marketplace where users can trade crypto currencies, similar to stock exchanges. Examples of popular CEXs include Binance, Coinbase, Bybit, OKX.
CEX pros: user-friendly interface, high liquidity and provide customer support.
CEX cons: require KYC, charge higher fees, control user funds and exposure to security risks.
Decentralized exchanges (DEX): operate without central authorities and intermediaries. DEXs leverage blockchain technology and smart contracts to facilitate peer-to-peer transactions. Popular DEXs include: Uniswap and PancakeSwap.
DEX pros: privacy (no need for KYC), total control of your funds, access to new tokens before they are listed on CEXs, lower fees (but need to check gas fee costs),
DEX cons: require technical skills, lower liquidity, no customer support, smart contract risks.
Which one to choose?
Choose CEX if you:
- a beginner just started out in crypto world.
- want to execute large, fast transactions.
Choose DEX if you:
- value privacy and control.
- want to have early access to new tokens.
