#CEXvsDEX101 CEX vs DEX 101: Understanding the Basics

When entering the world of crypto trading, one of the first choices you'll face is deciding between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX). Each offers distinct advantages and trade-offs depending on your needs, experience level, and trust preferences.

What is a CEX (Centralized Exchange)?

A Centralized Exchange is operated by a centralized entity or company. Examples include Binance, Coinbase, and Kraken. These platforms act as intermediaries between buyers and sellers and typically require users to deposit funds into custodial wallets.