#CEXvsDEX101

🏛️ DEX (Decentralized Exchange)

DEX is a cryptocurrency exchange that operates on the blockchain and without intermediaries (such as companies or third parties). All transactions are conducted peer-to-peer through smart contracts.

🔑 Features of DEX:

No KYC/AML (generally anonymous)

You hold the private keys and maintain control over your assets

Examples of famous DEX: Uniswap, PancakeSwap, SushiSwap, Curve

👍 Advantages:

Safer from platform hacking risks

Transparent and open

Can exchange tokens that are not listed on CEX

👎 Disadvantages:

Less user-friendly for beginners

Gas fees (transactions) can be expensive on certain networks (like Ethereum)

Cannot use fiat currency directly

🏦 CEX (Centralized Exchange)

CEX is a centralized cryptocurrency exchange run by a company or entity that regulates all transactions. Users must deposit funds to the platform and usually go through an identity verification process (KYC).

🔑 Features of CEX:

Controlled by a central entity (similar to a bank)

Examples: Binance, Coinbase, Bybit, Indodax, Kraken

👍 Advantages:

Easy to use for beginners

Can buy crypto directly with fiat currency

High liquidity and fast transactions

👎 Disadvantages:

You do not hold the private keys (not “your keys, your coins”)

Vulnerable to hacking

Can be frozen or censored by the government