#CEXvsDEX101

CEX vs DEX 101

In light of the growing interest in cryptocurrencies and the evolution of trading systems, comparing centralized exchanges (CEX) and decentralized exchanges (DEX) has become one of the fundamental topics that investors need to understand clearly. Centralized exchanges represent an ideal choice for beginners and users seeking ease of use, as they provide simple trading interfaces, direct technical support, as well as high liquidity and the ability to use fiat currencies. However, they rely on intermediaries who control the funds, making them susceptible to hacking risks or regulatory freezing. In contrast, decentralized exchanges grant users complete freedom in managing their assets through self-custodial wallets, without the need for a third party. They also enhance user privacy by not requiring identity verification (KYC) and provide opportunities to participate in new projects as soon as they are launched. However, DEX may be less user-friendly in terms of interface and often lack high liquidity and direct technical support, making them more suitable for advanced users. The choice of the most appropriate platform depends on the user's goals, level of expertise, and degree of trust in centralized versus decentralized solutions. Overall, trends indicate a gradual increase in reliance on DEX, especially among those seeking complete control over their assets, while CEX remains of interest to the majority due to its ease of use and comprehensive support.