#CEXvsDEX101 CEX vs DEX 101 🔁💱
(Centralized vs Decentralized Exchanges)
Here’s a quick crash course to help you understand the difference between CEX and DEX — two major types of crypto trading platforms:
🏛️ Centralized Exchange (CEX)
Platforms like Binance, Coinbase, KuCoin
✅ Pros:
Easy to use (great for beginners)
High liquidity
Fast transactions
Customer support
❌ Cons:
Requires KYC (identity verification)
Funds are stored in platform wallets (less control)
Vulnerable to hacks or shutdowns
💡 You trust the platform to hold your crypto safely.
🌐 Decentralized Exchange (DEX)
Platforms like Uniswap, PancakeSwap, dYdX
✅ Pros:
No KYC (more privacy)
You control your wallet & funds (non-custodial)
Permissionless & open source
Lower chance of censorship
❌ Cons:
Lower liquidity (especially for small tokens)
Slower and costlier on some blockchains
More complex for beginners
💡 You trade directly from your own wallet, with no middleman.
🔍 Summary Table:
FeatureCEXDEXCustodyPlatform-controlled walletsUser-controlled walletsKYC/AMLRequiredUsually not requiredEase of UseBeginner-friendlyRequires basic crypto knowledgeSecurity RiskRisk of hacksSmart contract riskSpeed & LiquidityHighVariesPrivacyLowHigh
🧠 Pro Tip:
If you're just starting, try a CEX.
Once you’re confident and value privacy/control, explore DEX.
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