#CEXvsDEX101 #CEXvsDEX101
Let’s break down #CEXvsDEX101 — a beginner-friendly comparison between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX):
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🏛️ CEX (Centralized Exchange)
Examples: Binance, Coinbase, Kraken, KuCoin
✅ Pros:
User-friendly: Easy interfaces for beginners.
High liquidity: Faster trades with less slippage.
Customer support: Help when things go wrong.
Fiat on/off ramps: Easily convert crypto ↔ fiat.
❌ Cons:
Custodial: You don’t control your private keys.
KYC required: You must verify your identity.
Centralized risk: Hacks, downtime, or censorship are possible.
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🌐 DEX (Decentralized Exchange)
Examples: Uniswap, PancakeSwap, dYdX, Curve
✅ Pros:
Non-custodial: You keep control of your keys/funds.
Permissionless: No KYC, anyone can trade.
Transparent: Open-source smart contracts.
❌ Cons:
Lower liquidity (for less popular tokens).
Complex UI: Not always beginner-friendly.
Gas fees: You pay for every action (esp. on Ethereum).
Smart contract risk: Bugs in code can be exploited.
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💡 Key Differences at a Glance:
Feature CEX DEX
Custody Centralized (not your keys) Decentralized (your keys)
KYC/AML Required Not required
Speed & Liquidity High Depends on platform/token
Trust Level Trust the platform Trust the code
Fiat Support Yes Rare (requires bridges)
Best For Beginners, fiat-crypto trades DeFi users, privacy advocates
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🚨 TL;DR
CEX = Convenience, security risks, KYC.
DEX = Control, privacy, DeFi access — but DYOR (Do Your Own Research).
