CEX or DEX: Understanding Centralized and Decentralized Wallets in Crypto

If you're new to crypto, welcome! I'll guide you through the complex difference between CEX (Centralized Exchange) and DEX (Decentralized Exchange) wallets.

Centralized wallets:

These are similar to traditional bank accounts, allowing safe storage but also enabling third-party control and tracking. Think of it like a bank, where you trust an institution to manage your funds.

Decentralized wallets:

on the other hand, offer freedom and autonomy. You can transact without intermediaries, eliminating the risk of account restrictions.

Examples of CEX wallets:

- Coinbase Wallet

- Binance Wallet

- Bybit Wallet

Examples of DEX wallets:

- MetaMask

- Trust Wallet

- Ledger Live (hardware wallet integration)

In summary, CEX wallets offer convenience but require trust in a third-party institution. DEX wallets provide autonomy, security, and freedom but often demand more technical expertise.

So, which one do you prefer and why?