#CEXvsDEX101 Centralized Exchanges (CEX)

Examples: Binance, Coinbase, Bitget

Custody: Hold your crypto (you don’t control keys).

Speed: High liquidity, instant SEK deposits (SEPA/Swish), fast trades.

Features: Fiat on-ramps, staking, derivatives, copy trading.

Fees: 0.1–0.6% per trade + withdrawal fees.

Regulation: KYC/AML required (MiCA compliant in EU).

Risk: Hacks target exchanges (e.g., Mt. Gox), but insured funds.

Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, dYdX

Custody: You hold keys (non-custodial).

Speed: Slower; relies on blockchain confirmations (gas fees).

Features: Permissionless, anonymous swaps, liquidity pool rewards.

Fees: 0.3% trade fee + network gas (ETH: $5–$50/tx).

Regulation: Unregulated (but front-end may enforce geo-restrictions).

Risk: Smart contract exploits (e.g., $600M Poly Network hack).

When to Use Which?

CEX: For beginners, fiat conversions, leveraged trading.

DEX: For privacy, token launches, or avoiding KYC.