#CEXvsDEX101
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🏦 CEX – Centralized Exchange
Examples: Binance, Coinbase, Kraken
✅ Pros:
User-friendly UI: Easier for beginners.
High liquidity: More buyers/sellers = faster trades.
Fiat on-ramps: Supports credit cards, bank transfers.
Customer support: Help available if you get stuck.
❌ Cons:
Custodial: You don’t fully control your assets.
KYC required: You must verify your identity.
Centralized risk: Vulnerable to hacks, shutdowns, and censorship.
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🧬 DEX – Decentralized Exchange
Examples: Uniswap, PancakeSwap, dYdX
✅ Pros:
Non-custodial: You control your keys and funds.
Privacy: No KYC required in most cases.
Permissionless: Anyone can trade; open to all.
Greater security: Less risk of centralized hacks.
❌ Cons:
Lower liquidity: Especially for smaller tokens.
Complex UX: Can be intimidating for newcomers.
No fiat support: You need crypto to get started.
Slippage & gas fees: Transactions can be costly or slow on congested chains.
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🆚 Quick Comparison Table
Feature CEX DEX
Custody Platform holds your funds You hold your funds (self-custody)
KYC/AML Usually required Usually not required
Security Risk Centralized (hack risk) Smart contract (code risk)
Ease of Use Very user-friendly Varies (more technical)
Trading Speed Fast Depends on blockchain
Fiat On-Ramp Yes No
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🚨 Rule of Thumb:
> “Not your keys, not your crypto.”
If you want control, go DEX. If you want convenience, go CEX.
