Centralized and Decentralized Exchanges｜Choose the Right Trading Scenario to Hold Asset Control

🔹 What is a Centralized Exchange (CEX)?

These exchanges are operated by companies or platforms, such as Binance, Coinbase, OKX, etc. They offer a user-friendly interface and a high liquidity trading experience, providing multiple features such as fiat deposits, leverage, contracts, and more.

✅ Advantages:

Easy to operate, suitable for beginners

High liquidity, fast order execution

Comprehensive customer service and regulatory support (such as KYC, risk control)

⚠️ Disadvantages:

Private keys are not in your own hands, "Not your keys, not your coins"

If the platform is hacked or goes bankrupt, assets may be unrecoverable

Must trust third-party custody

🔸 What is a Decentralized Exchange (DEX)?

DEX is built on the blockchain (such as Uniswap, PancakeSwap, dYdX), and the trading process does not require asset custody or account registration; users interact directly with smart contracts through wallets.

✅ Advantages:

Complete control over assets and private keys, high freedom

No KYC required, ensuring privacy

Strong openness, early project tokens are often listed on DEX

⚠️ Disadvantages:

Interface and operation are relatively complex, requiring knowledge of blockchain wallets

High slippage in trading, liquidity pool depth is not as good as CEX

High risk of scams and fake tokens, beginners need to pay special attention to contract addresses

💡 How would I choose?

For daily trading, fiat deposits, and high stability requirements: I would use a Centralized Exchange because it is fast, convenient, and has sufficient trading depth.

For participating in DeFi or early opportunities for new tokens: I would turn to a Decentralized Exchange for greater freedom and early opportunities.

For asset storage and control: I prefer to keep long-term assets in cold wallets, using DEX to ensure real asset control.

🙋‍♂️ Advice for beginners using DEX for the first time:

Start small, familiarize yourself with wallet connections, gas fee mechanisms, and trading processes.

Only trust official contract addresses to avoid using fake tokens or phishing websites.

Using a hardware wallet with DEX operations can enhance security.

Research more, learn to use tools like Etherscan, BSCScan, etc., to verify transactions and token authenticity.

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#中心化与去中心化交易所 to earn Binance points!