#CEXvsDEX101 🚀 #CEXvsDEX101: What’s the Difference?

🔒 CEX (Centralized Exchange)

Examples: Binance, Coinbase, Kraken

Custodial: The exchange holds your funds.

User-Friendly: Simple interfaces & high liquidity.

Regulated: Often comply with KYC/AML rules.

Downside: Vulnerable to hacks, central control over assets.

🌐 DEX (Decentralized Exchange)

Examples: Uniswap, PancakeSwap, dYdX

Non-Custodial: You control your private keys & funds.

Permissionless: Anyone can trade directly from their wallet.

Privacy: No KYC needed in most cases.

Downside: Lower liquidity, higher learning curve, smart contract risk.

🧐 Key Differences:

FeatureCEXDEXControl of FundsExchangeUserPrivacyRequires KYCNo KYC (usually)SecurityCentralized (vulnerable)Smart contract dependentAccessibilityEasy to useRequires Web3 knowledge

⚖️ Which one is better?

Depends on your needs:

New to crypto? Start with a CEX.

DeFi enthusiast? Dive into a DEX.

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