The difference between a centralized exchange (CEX) and a decentralized exchange (DEX) lies mainly in how transactions are managed.
📌 Centralized Exchange (CEX)
Examples: Binance, KuCoin, Coinbase.
Pros:
Easier to use, ideal for beginners.
High liquidity — buying and selling is faster.
Customer support is available.
Allows the use of bank cards, transfers, etc.
Cons:
You depend on the platform — if it's hacked or blocks your account, you may lose access to your funds.
Requires KYC (document verification).
You don’t have full control over your crypto (it's not stored in your personal wallet).
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📌 Decentralized Exchange (DEX)
Examples: Uniswap, PancakeSwap, dYdX.
Pros:
More privacy (no KYC).
You control your own funds — you use your own wallet (like Trust Wallet or MetaMask).
More freedom to trade rare or newly launched tokens.
Cons:
Lower liquidity for some trading pairs.
Less user-friendly interface.
If you make a mistake in a transaction, there’s no support to help.
Can have high network fees (especially on Ethereum).
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✅ When do I prefer to use each one?
I use CEX when I want to buy crypto with fiat currency (e.g., Kz or USD), or when I need higher liquidity and faster order execution.
I use DEX when I want to access new tokens, avoid KYC, or trade directly from my wallet with more control and security.
