#CEXvsDEX101 Comparison between Centralized (CEX) and Decentralized (DEX) Platforms**

## **1. Centralized Platforms (CEX - Centralized Exchanges)**

- **Examples:** Binance, Coinbase, Kraken.

- **Characteristics:**

- Controlled by a **centralized company** that manages funds and orders.

- Requires **user identification (KYC)** in most cases.

- Features **high liquidity** and fast execution.

- Supports **margin trading (leverage)** and various trading pairs.

- **Risks:** platform hacking, account freezing, government oversight.

## **2. Decentralized Platforms (DEX - Decentralized Exchanges)**

- **Examples:** Uniswap, PancakeSwap, dYdX.

- **Characteristics:**

- Operate **without intermediaries** via smart contracts on the blockchain (such as Ethereum, BSC).

- **No KYC required** → maintains privacy.

- Users **control their private keys** (there is no centralized storage).

- Relies on an **"Automated Market Maker" (AMM)** or decentralized **order book**.

- **Risks:** smart contract bugs, limited liquidity, occasionally high network fees #PEPE‏ #Dogecoin‬⁩