#CEXvsDEX101
CEX vs DEX 101 – What’s the Difference?
Let’s break it down for #CryptoTrading, especially when it comes to $BTC 👇
🏢 Centralized Exchange (CEX)
Examples: Binance, Coinbase, Kraken
🔐 Custodial: Funds are held by the platform (they control your private keys)
⚡ Speed: Fast execution, high liquidity
🧭 Ease of Use: Beginner-friendly interface
⚠️ Downside: Prone to hacks, regulatory risks
🌐 Decentralized Exchange (DEX)
Examples: Uniswap, SushiSwap, dYdX
🔓 Non-Custodial: You keep your keys; trade from your wallet
🕵️ Privacy: Usually no KYC
🛡️ Security: No central point of failure
🐢 Downside: Slower, less liquid—especially for BTC pairs
🔄 $BTC Trading on CEX vs DEX
📈 CEX: Native BTC/fiat pairs, deep liquidity
🔁 DEX: Wrapped BTC (e.g., wBTC on Ethereum), fewer native BTC trades
