#CEXvsDEX101

1. Control & Ownership

CEX: Operated by a company (e.g., Binance, Coinbase). They hold users' funds and control transactions.

DEX: Runs on blockchain smart contracts (e.g., Uniswap, PancakeSwap). Users retain full control of their funds via wallets like MetaMask.

2. Custody of Funds

CEX: You deposit crypto into the exchange’s wallet (risk of hacks or exit scams).

DEX: Non-custodial—trades happen directly from your wallet.

3. Privacy & KYC

CEX: Requires identity verification (KYC).

DEX: No KYC—trade anonymously.

4. Liquidity

CEX: Higher liquidity (uses order books and market makers).

DEX: Relies on liquidity pools (users provide liquidity for rewards).

5. Speed & Fees

CEX: Faster (off-chain order matching), but may charge higher fees.

DEX: Slower (on-chain transactions), with gas fees (e.g., Ethereum network congestion).

6. Available Features**

CEX Fiat on/off ramps, margin trading, staking, derivatives.

DEX Swaps, yield farming, liquidity mining, newer tokens (no listing restrictions).

7. Security Risks

CEX Hacking targets (e.g., Mt. Gox, FTX collapse).

DEX Smart contract bugs (e.g., exploits in protocols like Poly Network).

When to Use Which?

CEX Beginners, fiat conversions, high-frequency trading.

DEXPrivacy, early-stage tokens, full asset control.

Both have trade-offs—CEX offers convenience, while DEX aligns with crypto’s decentralized ethos. 🚀