#CEXvsDEX101 CEX vs DEX – What’s the Difference & Which One Should You Use?

If you’ve ever tried trading cryptocurrency, chances are you’ve heard about CEXs (Centralized Exchanges) and DEXs (Decentralized Exchanges). But what do these terms really mean? And more importantly, which one is better for you?

Let’s break it down in the simplest way possible.

What is a CEX?

A CEX (Centralized Exchange) is a crypto trading platform run by a company. Examples include Binance, Coinbase, and Kraken.

These platforms:

Handle your trades

Hold your funds (unless you withdraw)

Require KYC (Know Your Customer) verification

Pros of CEXs:

User-friendly: Great for beginners with easy-to-use interfaces

High liquidity: Fast transactions and price stability

Customer support: Help available in case of issues

What is a DEX?

A DEX (Decentralized Exchange) is a trading platform that doesn’t rely on a central company. Examples include Uniswap, PancakeSwap, and SushiSwap.

These platforms:

Let you keep full control of your funds

Usually don’t ask for KYC

Operate through smart contracts on the blockchain

Pros of DEXs:

Privacy: No need to submit personal identification

Full control: Your crypto stays in your own wallet

Transparency: Open-source and decentralized