#CEXvsDEX101 If you are just entering the world of cryptocurrencies, it is very likely that you have already come across the terms CEX (Centralized Exchange) and DEX (Decentralized Exchange). But what do these names mean in practice? And what is the best choice for you?

What is a CEX?

Centralized exchanges, such as Binance, Kraken, or Coinbase, operate like traditional brokers. They are operated by companies that mediate transactions, provide liquidity, and offer a user-friendly interface.

Advantages:

Easy-to-use interface

High liquidity

Customer support

Extra features like staking and margin trading

Disadvantages:

You need to trust the company (risk of hacks or bankruptcy)

KYC (identity verification) often mandatory

Less control over your funds

What is a DEX?

Decentralized exchanges, such as Uniswap, PancakeSwap, or dYdX, allow you to swap cryptocurrencies directly from one wallet to another, without intermediaries.

Advantages:

Greater privacy (usually no KYC)

You maintain control of your keys and funds

Access to lesser-known tokens

Disadvantages:

Can be more complex for beginners

Lower liquidity in some pairs

Limited or non-existent customer support

Which Should I Use?

It depends on your profile!

🔹 If you value ease and are just starting, a CEX might be the way to go.

🔹 If you value autonomy and privacy, it’s worth exploring the world of DEXs.

The good news is that you don’t have to choose just one. Many experienced users use both, depending on the type of transaction they want to make.