#CEXvsDEX101

CEX vs DEX 101:

CEX (Centralized Exchange): Platforms like Binance, Coinbase, and Kraken. They act as intermediaries, holding your funds and matching buyers with sellers. Pros: easy to use, high liquidity, faster trades. Cons: less privacy, risk of hacks, and you don’t control your keys.

DEX (Decentralized Exchange): Platforms like Uniswap, PancakeSwap, and SushiSwap. Trades happen peer-to-peer via smart contracts—no central authority. Pros: more privacy, control of your funds, censorship-resistant. Cons: lower liquidity, slower, may be complex for beginners.

Bottom Line:

Use CEX for convenience and speed. Use DEX for privacy and full control. Many traders use both, depending on their needs.