#CEXvsDEX101

CEX vs DEX 101: Understanding the Basics

CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two main platforms for trading cryptocurrencies.

🔹 CEX (e.g., Binance, Coinbase)

Controlled by a central company.

Easier for beginners.

Fast transactions, high liquidity.

Requires KYC (identity verification).

You don’t fully control your funds.

🔹 DEX (e.g., Uniswap, PancakeSwap)

No central authority—runs on smart contracts.

More privacy, no KYC needed.

You control your own wallet and funds.

Slower and less liquid than CEX.

More complex for beginners.

Key Difference:

CEX is like a bank—you trust them with your money.

DEX is like cash—you hold and use it yourself.

Choose what suits your needs: convenience or control.