💱 Comparison Between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX)
Element Centralized Exchange (CEX) Decentralized Exchange (DEX)
Control Managed by a company or central entity Relies on smart contracts and users
Examples Binance, Coinbase, Kraken Uniswap, PancakeSwap, dYdX
Ownership of funds The platform holds your funds (custodial) You control your funds yourself (non-custodial)
Ease of use User-friendly interfaces and supports fiat currencies A bit harder for beginners
Verification (KYC) Usually required Often not required
Speed Faster due to the central system Relatively slower and depends on network congestion
Security Vulnerable to hacks if the platform is compromised Safer in terms of having no intermediary, but relies on user security
Liquidity Often higher due to the large number of users Varies, but improves over time
Centralized exchanges resemble traditional banks: easy and fast, but you place your trust in a third party.
Decentralized exchanges give you full control: greater privacy and control, but with higher responsibility.
Choose according to your needs: do you prefer convenience and ease of use? (CEX) or privacy and full control? (DEX)
