#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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