#CEXvsDEX101 Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two major platforms for crypto trading, each with unique pros and cons.

CEX (Centralized Exchange):

These platforms, like Binance, Coinbase, and KuCoin, are operated by companies that manage user funds and order books. They offer user-friendly interfaces, high liquidity, and customer support. However, you must trust the exchange with your assets, and your identity is usually required (KYC). CEXs can be vulnerable to hacks or government regulations.

DEX (Decentralized Exchange):

DEXs like Uniswap, PancakeSwap, and dYdX run on smart contracts and allow peer-to-peer trading directly from your wallet. You remain in control of your funds, and no KYC is required. While DEXs offer greater privacy and decentralization, they often have lower liquidity, higher slippage, and can be more complex for beginners.

Key Differences:

Custody: CEX holds your funds; DEX lets you keep control.

KYC: Usually required on CEX, not on DEX.

Speed & Fees: CEX is faster with fixed fees; DEX depends on network congestion.

Security: CEX is a bigger target for hacks; DEX risks include smart contract bugs.

Choosing between them depends on your priorities—convenience vs. control, privacy vs. support.