#CEXvsDEX101 CEX vs DEX: Understanding the Difference

1. Definition

CEX (Centralized Exchange) A platform operated by a centralized organization that facilitates crypto trading by acting as an intermediary. Examples: Binance, Coinbase, Kraken.

DEX (Decentralized Exchange) A peer-to-peer marketplace that allows users to trade cryptocurrencies directly from their wallets without relying on a central authority. Examples: Uniswap, PancakeSwap, dYdX.

2. Control & Custody

CEX: Users deposit funds into the exchange's wallet, meaning the exchange has custody of assets.

DEX: Users retain full control of their private keys and funds, enhancing self-custody and decentralization.

3. User Experience

CEX: User-friendly interfaces, customer support, and faster onboarding make them ideal for beginners.

DEX: Generally less intuitive, with steeper learning curves; suited for users comfortable with DeFi tools.