#CEXvsDEX101 Centralized or Decentralized?

Within the Crypto sphere, it is often said that if you do not have your private keys, then the cryptocurrencies you own do not actually belong to you because they are held in custody by the Exchanges.

However, it must be admitted that each has its pros and cons, for example:

1) Security: Centralized Exchanges, being regulated, must comply with certain regulations that require them to compensate users in cases of hacking or bankruptcy. In the case of decentralized Exchanges, they do not offer you greater guarantees for recovering your resources in cases of losses or hacks.

2) Earnings: In a centralized Exchange, the earnings or interest they pay you are determined by liquidity and the price of the asset, which in many cases does not exceed 5% or increase over time as an asset is locked.

However, a Decentralized Exchange offers you higher returns and more alternatives to make money, from normal staking to liquidity pools, launchpads, and other alternatives that typically generate higher returns.

Each has its pros and cons; diving into decentralized Exchanges is at your own risk because while you will find higher returns, you will also encounter the greatest scams, so you should be careful when depositing your Cryptos or your money.

In my experience, I would recommend first learning enough within centralized Exchanges before making a leap to the decentralized.