#CEXvsDEX101 Centralized vs. Decentralized Exchanges! 🚀
Choosing between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) is a fundamental decision for any crypto trader. Each has unique trade-offs in security, user experience, liquidity, and control. Knowing when to use which is crucial for informed risk management.
⚖️ CEX vs. DEX: Pros & Cons
* CEX (e.g., Binance):
* Pros: User-friendly interface, high liquidity, faster trades, fiat conversions, customer support.
* Cons: You do not fully control your keys (your funds are held by them), susceptible to hacks/regulations.
* DEX (e.g., Uniswap, PancakeSwap):
* Pros: True self-custody (you control your keys), greater privacy, wider variety of altcoins, censorship-resistant.
* Cons: Can be complex for beginners, lower liquidity for some pairs, higher gas fees, no fiat support, no customer support.