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#CEXvsDEX101 #CEXvsDEX101: A Quick Guide to Centralized vs Decentralized Exchanges

In the world of crypto, the hashtag #CEXvsDEX101 has become a popular way to explore the key differences between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs). Here’s a short breakdown to help you understand the essentials.

What is a CEX?

A Centralized Exchange is a platform run by a company or organization that facilitates the buying, selling, and trading of crypto assets. Examples include Binance, Coinbase, and Kraken. These platforms act as intermediaries and hold your funds for you.

Pros:

User-friendly and beginner-friendly

High liquidity and fast transactions

Customer support available

Cons:

Funds are stored in exchange wallets (not fully in your control)

Prone to hacks and regulatory risks

What is a DEX?

A Decentralized Exchange operates without a central authority. It uses smart contracts on a blockchain (like Ethereum) to allow users to trade directly from their wallets. Examples include Uniswap, SushiSwap, and PancakeSwap.

Pros:

You control your funds (non-custodial)

Greater privacy and censorship resistance

Permissionless and borderless

Cons:

Lower liquidity (in some cases)

Less intuitive for beginners

Limited customer support

Final Thoughts

CEX vs DEX isn’t a battle—it’s about preference and purpose. If you’re looking for ease of use and high liquidity, a CEX might be for you. If decentralization and self-custody are your priorities, DEXs are worth exploring.

Follow #CEXvsDEX101 to keep learning how these platforms shape the future of finance!