#CEXvsDEX101 CEX vs DEX 101: Understanding Crypto Exchanges

If you’re stepping into the world of cryptocurrency, one of the first choices you’ll face is where to trade. There are two main types of crypto exchanges: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Both serve the same purpose — allowing users to buy, sell, and trade crypto — but they operate in very different ways.

🔷 What is a CEX (Centralized Exchange)?

A CEX is a cryptocurrency exchange that is run by a company or organization. It acts as a middleman between buyers and sellers and typically holds your funds in its own wallets.

✅ Pros of CEXs:

User-friendly: Great for beginners with easy interfaces.

High liquidity: Large volume makes it easier to buy/sell quickly.

Customer support: Assistance is usually available if you have issues.

Fiat on-ramps: Easily deposit money via credit cards or bank transfers.

❌ Cons of CEXs:

Lack of control: You don’t hold your private keys — the exchange does.

Security risks: If the exchange is hacked, your funds may be at risk.

KYC requirements: Most CEXs require identity verification.

Final Tip:

“Not your keys, not your coins” is a popular saying in crypto. If you’re using a CEX, remember you’re trusting the platform with your assets. Consider transferring long-term holdings to a private wallet.