#CEXvsDEX101
Navigating the crypto world? Understanding the differences between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) is crucial.
🏢 Centralized Exchanges (CEXs)
Examples: Binance, Coinbase
Pros:
User-friendly interfaces
High liquidity and fast transactions
Support for fiat currencies
Cons:
Require KYC (Know Your Customer) verification
Custody of funds lies with the exchange
Potential vulnerability to hacks
🔗 Decentralized Exchanges (DEXs)
Examples: Uniswap, PancakeSwap
Pros:
Users retain control of their funds
Enhanced privacy; no KYC required
Open access to a wide range of tokens
Cons:
Steeper learning curve for beginners
Lower liquidity compared to CEXs
Potential risks from smart contract vulnerabilities
Hashtags: #CEXvsDEX101 #CryptoTrading #BlockchainBasics #DecentralizedFinance #CryptoEducation