#CEXvsDEX101 Here's a 101 guide on Centralized Exchanges (CEXs) vs Decentralized Exchanges (DEXs):

🔄 What Are They?

CEX (Centralized Exchange)

A platform operated by a centralized company where users trade cryptocurrencies. Examples: Binance, Coinbase, Kraken.

Key feature: The platform acts as an intermediary holding custody of user funds.

DEX (Decentralized Exchange)

A peer-to-peer marketplace on a blockchain where users trade directly from their wallets. Examples: Uniswap, PancakeSwap, dYdX.

Key feature: No central authority; trades occur via smart contracts.

🔑 Key Differences

FeatureCEXDEXCustodyExchange holds user fundsUsers retain control of their fundsKYC/AMLRequiredUsually not requiredEase of UseBeginner-friendlyMore complex for newcomersSpeedFast (off-chain order books)Slower (on-chain confirmation)LiquidityTypically higherCan be lower or fragmentedFeesMay charge trading + withdrawalLower but includes gas feesSecurityCentral point of failure (hacks)Smart contract risk; no single targetToken AvailabilityOften limited to listed tokensWide variety, including new