Pros and cons of CEX vs. DEX.
✅ CEX (Centralized Exchange)
Pros:
- Ease of use: Intuitive interfaces and customer support.
- High liquidity: More buyers and sellers, which reduces volatility.
- Transaction speed.
- Orders executed quickly.
- Reliability: Regulated institutions may offer more guarantees.
Cons:
- Fund custody: You depend on the exchange for the security of your assets.
- Strict regulations: Restrictions depending on the country.
- Hacking risk: History of attacks on centralized platforms.
✅ DEX (Decentralized Exchange)
Pros:
- Self-custody: You control your assets without intermediaries.
- Anonymity: Fewer KYC (Know Your Customer) requirements.
- Global access: No geographical restrictions.
- Transactions without intermediaries: You can trade directly from your wallet.
Cons:
- Less liquidity: Some DEX have fewer users, which can affect prices.
- Learning curve: Interfaces can be less intuitive for beginners.
- Speed: Transactions may be slower due to the blockchain network.
🧐 Which one do I prefer and in what situations?
Depends on the purpose:
- For quick trades and high liquidity: I prefer a CEX.
- For greater privacy and personal security: A DEX is the best option.
- To invest in tokens not listed on CEX: DEX is essential.
📌 What to consider when choosing between a CEX and a DEX?
- Purpose of the operation: Frequent trading or long-term investment?
- Fees: CEX often has additional costs, DEX may have high gas fees.
- Security: Do you trust the custodian of your funds?
- User experience: Do you feel comfortable with wallets and smart contracts?
🏆 Advice for someone using a DEX for the first time
1. Research before trading: Not all DEX are secure.
2. Use a reliable wallet: MetaMask, Trust Wallet, Ledger, among others.
3. Check gas fees: On networks like Ethereum, they can be high.
4. Start with small amounts:** To avoid costly mistakes.
5. Be careful with smart contracts: Always review the token code.
