#CEXvsDEX101
CEX vs DEX: WHATS THE MAIN DIFFERENCES?
๐ฆ Centralized Exchanges (CEX)
CEX (Centralized Exchange) is a crypto trading platform managed by a central authority, where users trade through the exchangeโs internal system. It offers high liquidity and user-friendly interfaces but requires users to trust the platform with their funds. Their main Features are
โ Easy to use
โ High liquidity
๐ซ You donโt control your keys
๐ซ Prone to hacks & regulations
Example: Binance, Coinbase
๐ Decentralized Exchanges (DEX)
DEX (Decentralized Exchange) is a peer-to-peer marketplace where users trade directly from their wallets using smart contracts. It offers greater privacy and control but may involve higher complexity and lower liquidity. Their main Features are
โ Full control of your funds
โ Privacy-focused
๐ซ Slower & complex for newbies
๐ซ Lower liquidity
Example: Uniswap, PancakeSwap
๐ฏ Quick Tip:
Use CEX for speed & convenience
Use DEX for privacy & true ownership
๐ฌ Which one do YOU trust more with your crypto? ๐
#Crypto101 #CEXvsDEX #CryptoEducation #BinanceSquare #Web3
