CEX vs DEX 101: Understanding the Differences 🔍

Centralized Exchanges (CEX) like Binance, Coinbase, and Kraken are managed by companies that facilitate crypto trading. They offer user-friendly interfaces, high liquidity, fast transactions, and customer support.

🔹 Pros:

High liquidity

Fast order execution

Fiat on-ramps

Security measures (2FA, KYC)

🔸 Cons:

Custodial (you don’t control your private keys)

Subject to regulatory restrictions

Potential target for hacks

Decentralized Exchanges (DEX) like Uniswap, PancakeSwap, and dYdX operate without intermediaries, allowing users to trade directly from their wallets.

🔹 Pros:

Non-custodial (you own your keys!)

Global accessibility & anonymity

Typically lower listing barriers for new tokens

🔸 Cons:

Lower liquidity (for some tokens)

Complex UI for beginners

No customer support if something goes wrong

Slower trade execution on certain blockchains

When Do I Use Each?

✅ I use CEXs when I need fiat conversion, advanced trading tools, or large-volume trades.

✅ I turn to DEXs for access to new or niche tokens, privacy, and true decentralization.

Both have their place in the crypto ecosystem. Knowing when and how to use them is key to navigating Web3 smartly! 🚀

#CEXVSDEX101 #Binance #CryptoEducation #DeFi #CeFi