#CEXvsDEX101
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### 🚩 What is the difference between them?
* **CEX (Centralized Exchange):**
An exchange like Binance or Coinbase or Kraken operated by a central authority that controls trading, user funds, and security.
* **DEX (Decentralized Exchange):**
A marketplace between individuals like Uniswap or PancakeSwap or dYdX that allows users to trade currencies directly from their wallets using smart contracts.
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### ⚙️ Key Differences
| Feature | CEX (Centralized Exchange) | DEX (Decentralized Exchange)
| **Asset Custody** | The exchange holds user funds | The user holds their own funds |
| **Identity Verification (KYC)** | Often required | Often not required |
| **Speed** | Fast (Centralized servers) | Slower (Depending on blockchain confirmations) |
| **Liquidity** | Usually higher | Relatively lower but improving |
| **Ease of Use** | User-friendly and simple interface | May require more technical knowledge |
| **Security Risks** | Prone to hacks or data leaks | Risks in smart contracts only |
| **Listing Control** | The exchange decides what gets listed | Community-driven or automatic without permission |
### ✅ Pros and ❌ Cons
**Pros of CEX**
✅ High liquidity
✅ User-friendly interface
✅ Fast trade execution
✅ Direct technical support