#CEXvsDEX101 CEX (Centralized Exchange) is a cryptocurrency trading platform managed by companies like Binance, Coinbase, or Kraken. Here, you need to create an account, go through the KYC process (identity verification), and store assets within the platform.

📌 What is DEX?

DEX (Decentralized Exchange) is a cryptocurrency trading platform that operates without intermediaries, directly on the blockchain using smart contracts. Examples include Uniswap, PancakeSwap, or SushiSwap. You do not need KYC, and the assets remain in your own wallet.

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⚙️ Main Differences

Asset Ownership:

CEX holds your assets, while DEX allows you to maintain full control.

Security:

CEX is prone to major hacks (like FTX), while DEX is safer in terms of personal control — but vulnerable to smart contract bugs.

Privacy:

CEX requires KYC, DEX does not. DEX is suitable for those who care about privacy.

Access and Ease:

CEX is more user-friendly for beginners, its UI is simple. DEX tends to be more technical.

Speed & Cost:

CEX is faster and cheaper for daily trading. DEX can be expensive due to network fees, but it is transparent and without regulatory restrictions.

Liquidity:

CEX usually has larger volumes. DEX relies on user liquidity (liquidity pools).

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💡 When to Use CEX or DEX?

Use CEX if you:

Are new to the crypto world

Want a simple and fast experience

Don’t mind KYC and third-party storage

Use DEX if you:

Want full control over your assets

Care about privacy and financial freedom

Are ready to learn a bit more technical

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🧠 Remember the important saying:

"Not your keys, not your coins."

If you don’t hold the private key, you don’t really own your assets.