#CEXvsDEX101

CEX vs DEX

?Which One To You Choose

My curiosity led me to read about this hashtag

I learned about two types of platforms

And I got to know the advantages and disadvantages of each one

The first: Centralized platforms (CEX)

Such as

Binance, Coinbase, Kraken, Bitfinex

Among its advantages

Easy to use for beginners

Fast execution of trades

High liquidity (large trading volume)

Technical support and additional security services

Ability to trade with fiat (such as the dollar or riyal).

Among the disadvantages

The platform controls your money (you do not own your private keys).

Vulnerable to hacking or freezing by governments

Requires identity verification (KYC) in most cases.

The second: Decentralized platforms (DEX)

Such as

Uniswap, PancakeSwap, SushiSwap, dYdX

And among its advantages

Trading occurs directly between users (peer-to-peer).

Full control of the wallet (you own your private keys).

No need for KYC in most cases.

And among the disadvantages

Can be complicated for beginners

Liquidity may be less than CEX for some currencies.

Cannot buy with fiat currency directly (you need a wallet and cryptocurrencies in advance).