#CEXvsDEX101
đ CEX vs DEX 101 â Whatâs the Difference?
đď¸ CEX â Centralized Exchange
Examples: Binance, Coinbase, Kraken
Custody: You donât hold your private keys â the exchange does.
Speed & Liquidity: High; better for active trading.
User Experience: Easy to use, beginner-friendly.
KYC/AML: Required â you must verify identity.
Risk: Centralized control = single point of failure (hacks, shutdowns).
đ DEX â Decentralized Exchange
Examples: Uniswap, PancakeSwap, dYdX
Custody: You control your assets â "Not your keys, not your coins."
Speed & Liquidity: Depends on network congestion and TVL.
User Experience: Requires Web3 wallet; more technical.
KYC/AML: Often none â more privacy, but also higher risk.
Risk: Smart contract bugs, impermanent loss â but no central control.
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đ Summary:
Feature CEX DEX
Custody Exchange-controlled User-controlled
Regulation Fully regulated Mostly unregulated
Privacy Low High
Security Risk Centralized failures Smart contract exploits
Speed/Liquidity Faster, deeper Slower, varies
