#CEXvsDEX101 Absolutely! Here's a clear and simple explanation of#StrategyBTCPurchase
#CEX vs DEX to go with the image:
๐ CEX (Centralized Exchange)
โ How it Works:
A centralized exchange is run by a company. It acts as a middleman between buyers and sellers. You deposit your funds into their platform and they manage your trades.
๐ Features:
User-friendly and beginner-friendly
Fast trades and high liquidity
Customer support available
Requires KYC/ID verification
Funds are held by the exchange (you donโt control your private keys)
๐ Examples:
Binance
Coinbase
Kraken
Bybit
๐ DEX (Decentralized Exchange)
โ How it Works:
A decentralized exchange operates without a central authority. You trade directly from your own crypto wallet using smart contracts โ no middleman involved.
๐ Features:
No registration or KYC needed
You control your own private keys
Usually lower fees (but higher gas costs)
Trades are peer-to-peer and slower
Less liquidity than CEXs
๐ Examples:
Uniswap
๐ Key Differences at a Glance:
FeatureCEXDEXControlExchange-controlled walletsUser-controlled walletsKYC/IDRequiredNot requiredEase of UseHighMedium to Low (for beginners)SpeedFastSlower (depends on blockchain)RiskHacks, central failureSmart contract bugs, slippage
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