#CEXvsDEX101

🏦 What Is a CEX?

A Centralized Exchange is a platform where a central authority (a company) facilitates the buying, selling, and storing of cryptocurrencies. It acts as a middleman and custodian.

• Pros:

• Easy to use (great for beginners)

• Higher liquidity

• Faster trade execution

• Customer support

• Cons:

• Requires trust in the company

• Regulatory requirements (KYC)

• Vulnerable to hacks

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🌐 What Is a DEX?

A Decentralized Exchange is a peer-to-peer platform where users trade directly using smart contracts, without a third party holding their assets.

• Pros:

• You control your keys and funds

• Greater privacy and anonymity

• Open and permissionless

• Cons:

• More complex

• Slower and can be expensive (gas fees)

• No support if something goes wrong