#CEXvsDEX101 Centralized Exchanges (CEX) vs. Decentralized Exchanges (DEX) is a key topic in crypto trading. Here's a concise breakdown:

**CEX (Centralized Exchanges)**

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- Run by a central authority (e.g., Binance, Coinbase).

- Users deposit funds; the exchange holds custody.

- Pros: High liquidity, fast transactions, user-friendly, fiat on-ramps, advanced trading features.

- Cons: Requires KYC, risk of hacks, custodial (you don’t control your keys), potential for censorship or fund freezing.

- Example: You trade on Binance with an account; they manage your funds and execute trades.

**DEX (Decentralized Exchanges)**:

- Peer-to-peer trading on blockchain, no central authority (e.g., Uniswap, SushiSwap).

- Users retain control of funds via wallets (non-custodial).

- Pros: Greater privacy (no KYC), user control over funds, censorship-resistant, aligns with crypto’s ethos.

- Cons: Lower liquidity, higher fees (gas costs), slower trades, complex for beginners, limited fiat integration.

- Example: You swap tokens directly from your wallet on Uniswap using smart contracts.

**Key Trade-offs**:

- CEX: Easier, faster, cheaper but sacrifices control and privacy.

- DEX: More secure and private but less liquid and costlier.

Data from recent web sources (e.g., CoinGecko, CoinMarketCap) shows CEXs dominate trading volume (~90% of market), but DEXs are growing, especially in DeFi hubs like Ethereum and Solana. For instance, Uniswap’s 24h volume hit $1.2B recently, while Binance’s was ~$20B.

If you want to dive deeper into specific platforms or use cases, let me know!