#CEXvsDEX101 What’s the Difference?
In crypto, CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two key ways to trade digital assets — each with its own pros and cons.
A CEX like Binance or Coinbase acts as a middleman. You sign up, deposit funds, and the platform handles trades, order matching, and custody. It’s user-friendly, fast, and often more liquid. But it requires trust — your keys, data, and assets are managed by the exchange.
A DEX like Uniswap or #PancakeSwap runs on smart contracts and lets users trade directly from their wallets. It’s non-custodial, meaning you keep full control of your crypto. DEXs offer privacy, DeFi access, and resistance to censorship — but they can have higher fees, slippage, and slower transactions.
In short:
CEX = Convenience & speed, but centralized control
DEX = Privacy & control, but technical know-how needed
As Web3 evolves, both play crucial roles. Many traders use both, depending on the asset, market conditions, or security needs.
Know the strengths of each — and choose what aligns with your goals.
