🔁 #CEXvsDEX101

Centralized vs. Decentralized Exchanges – What’s the Difference?

As a crypto trader or investor, choosing the right type of exchange is key. Here's a simple breakdown of the two main types: CEX (Centralized Exchange) and DEX (Decentralized Exchange).

🔸 Centralized Exchange (CEX)

Examples: Binance, Coinbase, Kraken

CEXs act as intermediaries, similar to banks. They manage your funds, match orders quickly, and offer high liquidity. They’re user-friendly, with features like fiat on-ramps, customer support, and security measures. However, since the platform holds your assets, there's a trust factor involved.

Pros:

✔️ Easy to use

✔️ High liquidity & faster trades

✔️ Advanced tools & support

Cons:

⚠️ Requires trust in the platform

⚠️ Subject to regulations and potential hacks

🔹 Decentralized Exchange (DEX)

Examples: Uniswap, PancakeSwap, SushiSwap

DEXs run on smart contracts with no central authority. You trade directly from your wallet, keeping full control of your assets. However, DEXs can have lower liquidity and slower execution, and may be confusing for beginners.

Pros:

✔️ Full control of your funds

✔️ No KYC (in most cases)

✔️ Permissionless trading

Cons:

⚠️ Steeper learning curve

⚠️ Lower trading volume & support

Choose based on your goals: convenience vs. control.

#CryptoBasics #CEX #DEX #CryptoTrading #Binance #BlockchainEducation