#CEXvsDEX101 #CEXvsDEX101: Key Differences for Traders

Choosing where to trade crypto? Understanding the difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) is your first step.

CEX (Centralized Exchange): Think of platforms like Binance. They are company-run, offering a user-friendly experience with high trading speeds and deep liquidity. They manage your funds, provide customer support, and offer easy fiat-to-crypto conversions. However, this requires you to trust the exchange with your assets and complete identity verification (KYC).

DEX (Decentralized Exchange): These operate on the blockchain without a central authority. You hold your own keys, giving you full control over your funds ("Not your keys, not your crypto"). DEXs offer greater privacy and access to a wider range of new tokens. The trade-off can be a more complex user interface and the responsibility for your own security.

The Choice: CEXs prioritize convenience and speed, while DEXs champion user control and privacy.