#CEXvsDEX101 🔍 What are CEX and DEX?

Centralized exchanges (CEX), such as Binance, are managed by companies and offer:

✅ High liquidity and fast order processing

✅ User-friendly interface and customer support

✅ Support for fiat currencies and advanced trading tools

❌ Requirement to undergo KYC/AML

❌ Storing funds on the platform (you do not control the private keys)

❌ Potential risks of hacking or platform outages

Decentralized exchanges (DEX), such as Uniswap or PancakeSwap, operate through smart contracts and allow:

✅ Full control over private keys and funds

✅ No KYC in most cases

✅ Higher level of privacy and freedom

❌ Lower liquidity compared to CEX

❌ Higher risk of slippage

❌ Less user-friendly interface and lack of customer support

❌ Potential vulnerabilities in smart contracts

More details:

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⚙️ New Binance feature: Trading on DEX using CEX funds

Binance has introduced the feature "Trading on DEX using CEX funds," which allows users to use funds from their Binance accounts to trade tokens on decentralized exchanges.