#CEXvsDEX101 **CEX vs. DEX 101**
Centralized exchanges (CEX) like Binance or Coinbase are managed by companies, offering high liquidity, fast trades, and user-friendly interfaces. However, they require KYC, hold your funds, and are vulnerable to hacks.
Decentralized exchanges (DEX) like Uniswap or PancakeSwap operate on blockchains via smart contracts. They allow peer-to-peer trading without intermediaries, ensuring privacy and self-custody. However, liquidity can be lower, fees may vary, and transactions are irreversible.
**Key Differences:**
- **Control:** CEX manages your keys; DEX lets you own them.
- **Privacy:** CEX requires ID; DEX is permissionless.
- **Speed:** CEX is faster; DEX depends on blockchain congestion.
Choose CEX for convenience, DEX for decentralization and security. 🚀 #crypto #DeFi