#CEXvsDEX101 ✅

🚀 #CEXvsDEX101 in Cryptocurrencies

What are they?

• CEX (Centralized Exchange) = Centralized cryptocurrency exchange.

• DEX (Decentralized Exchange) = Decentralized cryptocurrency exchange.

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📊 How do they work?

🔵 CEX (Ex: Binance, Coinbase, Kraken)

• Works like a bank or brokerage.

• You deposit your cryptos on the platform.

• The exchange manages the process of buying, selling, and custody.

✅ Advantages:

• Very easy for beginners.

• High speed and liquidity.

• Customer support.

❌ Disadvantages:

• You do not control your cryptos (the exchange holds them).

• Risk of hacking or blockages due to regulations.

• Requires identity verification (KYC).

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🟢 DEX (Ex: Uniswap, PancakeSwap, dYdX)

• You connect your wallet (like Metamask).

• You swap directly from your wallet.

• No one else holds your funds: you are the bank.

✅ Advantages:

• You control your keys and funds.

• Privacy (no KYC in most cases).

• Access to new or “exotic” tokens.

❌ Disadvantages:

• Can be technical and confusing for new users.

• Transactions can be more expensive or slower depending on the network.

• No direct support if you make a mistake.

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🧠 Real Example

• In a CEX: you buy BTC with a card or transfer. They hold it for you.

• In a DEX: you connect your wallet and make a swap (e.g., ETH for USDT) directly.