#CEXvsDEX101 Here’s a clear comparison of Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs):

🔹 Centralized Exchanges (CEXs)

Definition:

A third-party platform that facilitates crypto trading. The exchange controls your funds and order book.

Examples: Binance, Coinbase, Kraken

✅ Pros:

User-Friendly: Easy interfaces, ideal for beginners.

High Liquidity: Faster trades with minimal slippage.

Customer Support: Dedicated help for issues.

Fiat Integration: Easy to deposit/withdraw in INR, USD, etc.

Advanced Features: Leverage, margin, stop-loss, staking.

❌ Cons:

Custodial Risk: Your funds are held by the exchange; prone to hacks.

Privacy Issues: KYC/AML required.

Central Control: Trades can be paused or reversed.

---

🔹 Decentralized Exchanges (DEXs)

Definition:

A peer-to-peer trading platform with no central authority. You control your wallet and funds.

Examples: Uniswap, PancakeSwap, dYdX

✅ Pros:

Non-Custodial: You control your private keys.

More Privacy: Often no KYC needed.

Censorship Resistance: Harder to shut down.

Permissionless Listings: Anyone can list tokens.

❌ Cons:

Lower Liquidity: Can cause slippage or failed trades.

Slower Transactions: Due to blockchain confirmation times.

No Support: If something goes wrong, you’re on your own.

Complex UI: Not beginner-friendly.

---

🔄 Quick Summary Table

Feature Centralized (CEX) Decentralized (DEX)

Control of Funds Exchange User

Ease of Use High Moderate/Low

KYC Requirement Yes Usually No

Trading Speed Fast Slower

Fiat Support Yes No

Liquidity High Lower

Privacy Low High

Security Risk Exchange can be