CEX vs DEX refers to two important types of trading exchanges in cryptocurrency trading. To understand this clearly, we first need to see what both are:

🔸 CEX (Centralized Exchange) - Centralized trading

Examples: Binance, Coinbase, CoinDCX, Zebpay

✅ Features:

* Operated by a company.

* Users must be verified based on KYC/AML (procedures to prevent money laundering scams).

* High liquidity – fast trading.

* User accessibility will be easy (UI/UX is better).

* Easily send coins to another person on the same exchange. Platforms like Binance Pay are designed to be very user-friendly.

❌ Disadvantages:

* User funds are under the control of the company (Not your keys, not your coins). This goes against the decentralization principle.

* High risk of being hacked. Recently, one or two exchanges that invested in it were all hacked.

* Sometimes accounts can be locked. When acting contrary to unnecessary or exchange rules. You might remember our Binance recently gave everyone a warning message.

🔸 DEX (Decentralized Exchange) - Decentralized trading

Examples: Uniswap, PancakeSwap, dYdX, Sushiswap

✅ Features:

• Fully operates on blockchain technology. Technical know-how is essential.

• Direct trading through a personal wallet (you control your coins).

• No KYC required (anonymous possible).

• censorship-resistance – no one can lock your account.

❌ Disadvantages:

• Liquidity may be low (issues for large trades).

• Complex UI for newcomers. Some tech understanding is necessary.

• Incorrect transactions cannot be reversed. Even a typo when providing an address for a transaction can lead to loss.

• Technical issues like front-running, impermanent loss.

• High gas fees to be paid for each transaction.

• Possible money laundering. This can definitely facilitate illegal activities in some countries.

🔚 Conclusion:

• For new users and those needing high liquidity ➤ CEX.

• Complete self-custody, for those who value privacy ➤ DEX.

Deciding on which platform to trade depends on your needs, experience, and risk tolerance.

Can we share your opinion...

⸻