#CEXvsDEX101

๐Ÿšจ CEX vs DEX โ€” Whatโ€™s Riskier? ๐Ÿค”

Before you trade your $BTC , $ETH , or $SOL , understand the risks behind where you trade ๐Ÿ‘‡

๐Ÿงท Centralized Exchanges (CEX) Risks:

You donโ€™t hold your keys ๐Ÿ—๏ธ โ€“ If the exchange is hacked, mismanaged, or collapses (like FTX), your funds can vanish.

Prime targets for hackers ๐Ÿ’ป โ€“ Billions have been lost from CEX hacks.

Single point of failure โ€“ Server down = no access to your funds.

Regulation drama โ€“ Governments can freeze accounts or shut them down.

Privacy issues โ€“ Your KYC data can get leaked. ๐Ÿ‘€

๐Ÿ” Decentralized Exchanges (DEX) Risks:

Self-custody โ€“ You lose your keys, you lose your crypto.

Smart contract bugs ๐Ÿž โ€“ A small code error = big losses.

Front-running by bots โ€“ On-chain trading isnโ€™t always fair.

Low liquidity = high slippage โ€“ You may not get the price you want.

No customer support โ€“ Youโ€™re on your own if things go wrong.

๐Ÿ’ก Summary:

CEX = convenience but risk of central failure.

DEX = more freedom but needs more caution.

Which one do you use more? Drop a ๐Ÿ’ฌ

๐Ÿ” Share this with someone who needs to know.

๐Ÿ“Œ Disclaimer: Not financial advice. Always DYOR before investing.