#CEXvsDEX101
The main difference between CEX (Centralized Exchange) and DEX (Decentralized Exchange) in cryptocurrencies is control and intermediary:
* CEX (Centralized Exchange) - Centralized Exchange:
* Intermediary: Managed by a company (like Binance, Coinbase).
* Company control: The company controls your funds when deposited.
* Easy for beginners: Simple interface, customer support, can buy with traditional currencies
* Less privacy: Requires identity verification (KYC).
* DEX (Decentralized Exchange) - Decentralized Exchange:
* No intermediary: Operates directly on the blockchain using smart contracts.
* You are in control: You alone control your funds and private keys.
* More complex: Requires greater understanding, cannot buy directly with traditional currencies.
* Higher privacy: Does not require identity verification (no KYC).
