#CEXvsDEX101

Centralized trading platforms (CEX) such as Binance, Kraken, and Coinbase offer high liquidity, fast trades, and user-friendly interfaces, making them ideal for beginners. However, they require trust in a third party, meaning that if they are hacked or disrupted, your assets could be at risk. You do not have full control over your assets, as your funds are held by the platform. 🛡️

🟩Decentralized trading platforms (DEXs) like Uniswap or PancakeSwap give you complete control over your funds and greater privacy, although they may have lower liquidity, slower trades, and require more technical knowledge. 🧠⚖️. You will remain fully in control, but if you lose your private key or recovery phrase, you will not be able to recover it. Your funds will be lost forever. ❌🔑

In summary:

➡️ CEX = convenience, speed, and recoverable access. CEX protects you from user errors.

➡️ DEX = privacy and control, complete ownership - but without backup support. DEX protects you from platform risks.

In an ideal world, you can use both according to your needs - trade quickly on a CEX exchange, then store or swap privately on a DEX exchange.