#CEXvsDEX101
๐จ CEX vs DEX โ Whatโs Riskier? ๐ค
Before you trade your $BTC , $ETH , or $SOL , understand the risks behind where you trade ๐
๐งท Centralized Exchanges (CEX) Risks:
You donโt hold your keys ๐๏ธ โ If the exchange is hacked, mismanaged, or collapses (like FTX), your funds can vanish.
Prime targets for hackers ๐ป 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. ๐
๐ Decentralized Exchanges (DEX) Risks:
Self-custody โ You lose your keys, you lose your crypto.
Smart contract bugs ๐ โ A small code error = big losses.
Front-running by bots โ On-chain trading isnโt always fair.
Low liquidity = high slippage โ You may not get the price you want.
No customer support โ Youโre on your own if things go wrong.
๐ก Summary:
CEX = convenience but risk of central failure.
DEX = more freedom but needs more caution.
Which one do you use more? Drop a ๐ฌ
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๐ Disclaimer: Not financial advice. Always DYOR before investing.