#CEXvsDEX101

🏛 Centralized Exchanges (CEXs)

Examples: Binance, Coinbase, Kraken

Pros:

• User-friendly: Easier interfaces and support for beginners.

• High liquidity: Usually more trading volume and faster transactions.

• Customer support: Direct help if something goes wrong.

• Fiat onramps: Easier to buy crypto using bank transfers, credit cards, etc.

Cons:

• Custodial: You don’t hold your private keys — “Not your keys, not your crypto.”

• Centralized control: Subject to hacks, government regulation, or internal failure.

• KYC/AML requirements: You need to verify identity in most cases.

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🌐 Decentralized Exchanges (DEXs)

Examples: Uniswap, SushiSwap, PancakeSwap

Pros:

• Non-custodial: You keep control of your funds and private keys.

• Permissionless: Anyone can trade without KYC in most cases.

• Transparency: Operate on public smart contracts on-chain.

Cons:

• User experience: Requires more technical knowledge (wallet setup, gas fees).

• Liquidity: May be lower for some tokens/pairs.

• No customer service: If something goes wrong, you’re on your own.