CEX vs DEX 101: What’s the Real Difference & Which One Should You Choose?
If you’ve dipped your toes into crypto trading, you’ve probably come across the terms CEX and DEX. But what exactly do they mean — and which one fits your needs better?
Let’s break it down in simple terms.
What is a CEX?
A CEX, or Centralized Exchange, is a crypto trading platform managed by a company. Well-known examples include Binance, Coinbase, and Kraken. These exchanges act as middlemen — they process your trades, hold your funds (unless you transfer them out), and typically require you to go through KYC (Know Your Customer) checks.
Advantages of Using a CEX:
Beginner-Friendly: Clean interfaces and guided user flows make it ideal for newcomers.