#CEXvsDEX101

In crypto trading, there are two main types of exchanges: CEX (Centralized Exchange) and DEX (Decentralized Exchange).

CEXs like Binance and Coinbase are run by companies. They are user-friendly, support fiat deposits, and offer fast transactions. However, users don’t control their private keys, and KYC is usually required. There’s also a higher risk if the exchange gets hacked or mismanaged.

DEXs like Uniswap and PancakeSwap are non-custodial and run on smart contracts. Users trade directly from their wallets, keeping full control of funds. No sign-up or KYC is needed, offering better privacy. However, they can be harder to use, slower, and lack fiat options.

In short:

CEX = Convenience & speed

DEX = Privacy & control

New users often start with CEXs, while experienced traders value DEX freedom. Many use both depending on their needs.