#CEXvsDEX101 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, like Binance, Kraken, or Coinbase, operate like traditional brokers. They are run 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

Disadvantages:

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

KYC (identity verification) often mandatory

Less control over your funds