Here is a simplified and clear explanation of the difference between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX):
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📌 First: Centralized Exchanges (CEX)
✅ Definition:
These are platforms managed and operated by a company or central authority (e.g., Binance, Coinbase, Kraken).
✅ Advantages:
• User-friendly interface.
• High liquidity (ease of buying and selling).
• Strong customer support and mobile applications.
• Availability of traditional payment methods (credit cards, bank transfers).
❌ Disadvantages:
• You do not own your private wallet keys (the famous saying: “Not your keys? Not your coins.”).
• Vulnerable to hacks (due to the presence of a central point).
• May require identity verification (KYC)#CEXvsDEX101
