#CEXvsDEX101 Here you have a clear comparison between centralized exchanges (CEX) and decentralized exchanges (DEX), along with key tips for using them safely and efficiently:

✅ Centralized Exchanges (CEX)

Examples: Binance, Coinbase, Kraken

🟢 Advantages:

User-friendly interface and customer support.

High liquidity and transaction speed.

Fiat onboarding (you can buy crypto with a card or transfer).

Advanced trading systems (stop loss, margin trading, etc.).

🔴 Risks:

Custody of funds: you do not control your private keys.

Risk of hacking or bankruptcy (e.g. FTX).

Regulation and KYC: you need to verify your identity.

🔐 Tips for using a CEX:

1. Do not leave funds on the exchange long-term. Use a personal wallet (cold or hot) for storage.

2. Enable 2FA (two-factor authentication).

3. Always verify the URL to avoid phishing.

4. Make periodic withdrawals, especially if you are not actively trading.

5. Check trading and withdrawal fees before trading.

✅ Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, dYdX

🟢 Advantages:

Self-custody: you control your keys and funds.

Privacy: generally no KYC.

Access to new or lesser-known tokens.

🔴 Risks:

More technical interface with less support.

Risk of smart contract errors or scams (rug pulls).

Lower liquidity and slippage in some pairs.

You are responsible for everything: if you lose your seed phrase or make an incorrect transaction, there is no going back.

🔐 Tips for using a DEX:

1. Use a secure wallet (like MetaMask, Rabby, or a hardware wallet).

2. Research the token and project before buying.

3. Check the contract address before making a swap.

4. Avoid making large swaps without checking slippage and liquidity.

5. Keep your browser secure and avoid suspicious extensions.