#CEXvsDEX101 What are DEX and CEX?

CEX (Centralized Exchange): These are cryptocurrency trading platforms managed by a centralized company. Examples: Binance, Coinbase, Kraken.

DEX (Decentralized Exchange): These are platforms without intermediaries, where transactions are executed through smart contracts on blockchains. Examples: Uniswap, PancakeSwap, dYdX.

What are the pros and cons of CEX compared to DEX?:

- Custody: CEX: The exchange holds your funds (risk of hacks). DEX: You have full control of your funds (self-custody).

- Privacy: CEX: Requires KYC (identification). DEX: Does not require KYC (anonymity).

- Liquidity: CEX: High (deep markets). DEX: Depends on liquidity providers (pools).

- Fees: CEX: Trading and withdrawal fees. DEX: Gas fees (network costs on Ethereum, BSC, etc.).

- Leverage: CEX: Offers margin and futures. Some DEX have futures (e.g., dYdX).

- Speed: CEX: Fast transactions (off the blockchain). DEX: Slower (depends on network congestion). |

- Listed tokens: CEX: Limited (require approval). DEX: Anyone can list a token (risk of scams).

- Support: CEX: Customer service. DEX: No support (everything is self-managed).

 I personally use both types, but I lean more towards CEX, I believe they have more advantages than DEX. #Binance has evolved and improved every day, and you can see this in the creation of the new feature of #LiveTrading

What to consider when choosing between a CEX and a DEX?

using a DEX for the first time?

Use a secure wallet. Start with a small amount of money. Check the fees (gas fees). Learn about slippage. Avoid phishing scams.