CEX vs DEX: Understand the Differences! 🤔
Have you heard of CEX and DEX but still confused? Let's discuss it simply!
CEX (Centralized Exchange):
* Similar to a digital bank. There is a company in the middle that manages our funds and transactions.
* Example: Binance
* Pros: Easy to use, customer support available, high liquidity.
* Cons: You do not hold the private keys to your assets (not your keys, not your crypto!).
DEX (Decentralized Exchange):
* Peer-to-peer platform without intermediaries. You interact directly with smart contracts.
* Example: PancakeSwap, Uniswap.
* Pros: You have full control of your private keys, more transparent, censorship-resistant.
* Cons: A bit complicated for beginners, liquidity can be lower, no customer support.
Which is better? It depends on your needs!
* CEX: For beginners, quick trading, or if you're comfortable with a third party managing your funds.
* DEX: For those who want full control over their assets, privacy, and enjoy exploring the DeFi world.
It's important to always DYOR (Do Your Own Research) before investing!
