#CEXvsDEX101 CEX (Centralized Exchanges):
* How: Traditional exchanges with intermediaries.
* Funds: You deposit them, they hold them.
* Regulation: Yes, they usually ask for your identification (KYC).
* Easy: Easier to use, ideal for beginners.
* Movement: More people trading, usually more "things" to buy/sell quickly.
* Fast: Transactions are usually quick.
* Help: They often have customer support.
* Danger: If they are hacked, they can steal your funds.
* Cost: They may charge more for trading.
* Privacy: Less private due to KYC.
* Examples: Binance, Coinbase.
DEX (Decentralized Exchanges):
* How: Direct exchange between people, without a boss.
* Funds: You have total control, they are in your wallet.
* Regulation: They usually don't ask for your identification, more private.
* Complicated: They can be more difficult to use.
* Movement: Sometimes there are fewer "things" and it may be harder to buy/sell quickly.
* Slow/Expensive (sometimes): Transactions can take longer and cost more (network fees).
* Help: They usually don't have direct help.
* Danger: You are responsible for the security of your funds.
* Cost: Trading fees are usually lower, but network fees can be high.
* Privacy: More private.
* Examples: Uniswap, PancakeSwap.
In short:
* CEX: Easy, fast, with help, but they hold your money and ask for identification.
* DEX: You control your money and your privacy, but it is more complicated and sometimes slower/expensive.