🔀 #CEXvsDEX101 – Centralized vs. Decentralized Exchanges Explained 🔍

Choosing where to trade is just as important as what to trade. Let’s break down the key differences between CEXs (Centralized Exchanges) and DEXs (Decentralized Exchanges):

🏦 Centralized Exchanges (CEX)

Examples: Binance, Coinbase, Kraken

✅ Pros:

High liquidity & fast execution

User-friendly interfaces

Fiat onramps (buy with USD, etc.)

Customer support

⚠️ Cons:

You don’t fully own your crypto (custodial)

Vulnerable to hacks & regulatory pressure

KYC/AML often required

🌐 Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, dYdX

✅ Pros:

Full control of your assets (non-custodial)

Usually no KYC

Greater privacy and transparency

Permissionless trading

⚠️ Cons:

Slower trades & higher slippage (low liquidity pairs)

Complex UI for beginners

Smart contract risks