#CEXvsDEX101

What is CEX vs DEX 101?

Not your keys, not your coins.” This popular saying among crypto enthusiasts emphasizes how centralized crypto exchanges retain custody over users' assets held on the exchange—while DEX users have full control over their digital assets.

CEX vs. DEX: Differences in Cryptocurrency Exchanges

CEXs (Centralized Exchanges): Platforms like Coinbase or Binance act as middlemen, managing trades and funds. They’re beginner-friendly, offer high liquidity, and provide customer support. However, they require ID verification, charge higher fees, and control your funds (not your keys, not your crypto).

DEXs (Decentralized Exchanges): Platforms like Uniswap or PancakeSwap let you trade directly from your wallet, giving you full control and privacy. They have lower fees, no sign-ups, and access to niche tokens. But they can be less user-friendly, lack customer support, and require technical knowledge.

CEX vs DEX: Key Points

Control: CEX holds your funds; DEX lets you hold them.

Privacy: CEX needs ID; DEX doesn’t.

Ease of Use: CEX is beginner-friendly; DEX needs expertise.

Liquidity: CEX is highly liquid; DEX can have lower liquidity.

Fees: CEX has higher platform fees; DEX has lower fees, but gas costs.