In the crypto world, there are two main ways to trade: centralized (CEX) and decentralized exchanges (DEX). Let's break down how they differ 🧠👇

⸻

🏛 CEX (Centralized Exchange)

🌐 Examples: Binance, Coinbase, Bybit

🔐 The exchange holds the keys

💸 Easy to deposit/withdraw fiat

⚡ High liquidity and execution speed

🛡️ Centralized control and support

📌 Pros:

✅ Convenient for beginners

✅ High trading volume

✅ Customer support

⚠️ Cons:

❌ The exchange controls your funds

❌ Possible restrictions or halts

🌀 DEX (Decentralized Exchange)

🌐 Examples: Uniswap, PancakeSwap, dYdX

🔐 “Not your keys – not your crypto”

📱 Direct exchange from wallet

💎 Complete decentralization

📊 Smart contracts govern the process

📌 Pros:

✅ Full control over assets

✅ Access to new tokens at early stages

✅ Less regulatory influence

⚠️ Cons:

❌ Lower liquidity

❌ More complicated for beginners

❌ Lack of support