#CEXvsDEX101
🔒 Centralized Exchanges (CEXs) like Binance or Coinbase are operated by a central entity. They offer:
✅ High liquidity
✅ Faster trades
✅ User-friendly interfaces
❌ Require KYC
❌ Funds are held by the exchange (custodial risk)
🔓 Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap operate without intermediaries. They offer:
✅ Full control of your funds (non-custodial)
✅ No KYC (privacy-focused)
✅ Open and transparent protocols
❌ Lower liquidity (in some cases)
❌ Higher learning curve & gas fees