#CEXvsDEX101
Do you know the difference between a CEX (Centralized Exchange) and a DEX (Decentralized Exchange)?
If you are trading or thinking about investing in crypto, this is a foundation you need to understand. Let's go 👇
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🏦 What is a CEX?
Centralized exchange, such as Binance, OKX, or KuCoin.
You create an account, deposit funds, and trade through the company's platform.
Advantages:
Simple and fast interface
High liquidity
Customer support
Features like futures, staking, etc.
Disadvantages:
Custody of funds remains with the broker
Subject to KYC and regulation
Risk of centralized hacks
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🌐 What is a DEX?
Decentralized exchange, such as Uniswap, PancakeSwap, or dYdX.
You connect your wallet (like MetaMask) and trade directly with smart contracts.
Advantages:
Total control of your funds
No need for registration or KYC
More privacy
Disadvantages:
May have less liquidity
Network fees (especially on Ethereum)
Less user-friendly interface for beginners
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🤔 Which is better?
It depends on your profile.
👉 If you seek convenience and volume, CEX may be better.
👉 If you value sovereignty and privacy, DEX is the way to go.
Do you use more CEX or DEX? Comment down below!
🟡 Follow my profile for more comparisons like this
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#CEXvsDEX101 #Cryptocurrencies #DEX #CEX #BinanceSquare #CryptoEducation #Trading #