#CEXvsDEX101 🏛️ CEX vs DEX – Guide 101

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🔹 What is a CEX (Centralized Exchange)?

A centralized exchange is a platform where users can buy, sell, or trade cryptocurrencies through a centralized entity that acts as an intermediary.

🔧 Examples:

• Binance

• Coinbase

• Kraken

• KuCoin

• OKX

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🌐 What is a DEX (Decentralized Exchange)?

A decentralized exchange is a platform that operates without an intermediary – users interact directly with each other through smart contracts.

🔧 Examples:

• Uniswap

• PancakeSwap

• dYdX

• SushiSwap

• Curve Finance

🛑 Advantages and Risks

✅ CEX – Advantages:

• Easy to use for beginners

• Auxiliary services: staking, lending, fiat onboarding

• Customer support

⚠️ CEX – Risks:

• The platform can freeze funds

• Can be hacked (e.g., Mt. Gox, FTX)

• You don’t control your keys (“Not your keys, not your crypto”)

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✅ DEX – Advantages:

• Complete control over funds

• Anyone can list a token

• Censorship-resistant

⚠️ DEX – Risks:

• Losses due to mistakes (e.g., incorrect swap confirmation)

• Vulnerable smart contracts

• More frequent scams (e.g., fake tokens, rug pulls)