CEX vs DEX 101 refers to an introduction or simplified explanation for comparing:
CEX = Centralized Exchange
DEX = Decentralized Exchange
Below is a simplified explanation (101) of the differences between them:
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🔁 CEX (Centralized Platforms)
Examples:
Binance – Coinbase – Kraken – Bybit
Advantages:
✅ Easy to use, simple interface
✅ High liquidity and instant execution of orders
✅ Technical support and customer service
✅ Supports deposits and withdrawals via Visa/bank
Disadvantages:
❌ Requires identity verification (KYC)
❌ You do not own the private keys (Not your keys, not your coins)
❌ Susceptible to hacking or freezing by authorities
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🌐 DEX (Decentralized Platforms)
Examples:
Uniswap – PancakeSwap – dYdX – SushiSwap
Advantages:
✅ Does not require verification (no KYC)
✅ Full control of assets (you keep your wallet and keys)
✅ Full transparency (smart contracts are open source)
✅ Resistant to censorship
Disadvantages:
❌ Difficult to use for beginners
❌ High gas fees sometimes (especially on Ethereum)
❌ Less liquidity compared to some CEXs
❌ No direct support for problem-solving
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⚖️ When to choose CEX?
If you are a beginner
If you are buying with a bank card
If you are looking for a fast and easy experience
🧠 When to choose DEX?
If you care about privacy and decentralization
If you are experienced in using wallets and smart contracts
If you are trading on new DeFi projects