#CEXvsDEX101

🪙 CEX vs DEX 101

A Beginner’s Guide to Crypto Exchanges

When diving into the world of crypto, the first step is often choosing the right exchange. This means understanding the difference between Centralized (CEX) and Decentralized (DEX) exchanges. Here's a quick guide to help you out:

🔐 What is a CEX (Centralized Exchange)?

A CEX is run by a company that manages your trades, assets, and security.

Examples: Binance, Coinbase, Kraken

Pros:

User-friendly

High liquidity

Fast transactions

Cons:

Requires KYC (ID verification)

You don’t control your private keys

Vulnerable to hacks

🌐 What is a DEX (Decentralized Exchange)?

A DEX lets you trade directly from your crypto wallet without a middleman.

Examples: Uniswap, PancakeSwap, SushiSwap

Pros:

No KYC needed

Full control of your funds

Generally more private and secure

Cons:

Can be complex for beginners

Lower liquidity

Slower transaction speeds

⚖️ CEX vs DEX at a Glance:

Feature CEX DEX

Control Platform controls your funds You control your funds

KYC/Verification Usually required Not required

Speed Faster Slower

Ease of Use Beginner-friendly Can be tricky for newcomers

Security Central point of failure More secure if used properly

🧠 Final Thoughts:

Use CEX if you're a beginner looking for ease and speed.

Use DEX if you value privacy, control, and decentralization.