#CEXvsDEX101

If you want to trade cryptocurrencies, it is essential to understand the difference between CEX (Centralized Exchanges) and DEX (Decentralized Exchanges).

Centralized Exchanges (CEX)

Examples: Binance, Coinbase, Kraken

How it works:

Managed by a company or organization

You deposit your funds on a platform (it holds the private keys)

Trades are processed off-chain via an internal order book

Advantages:

Simple and fast interface

High liquidity and instant execution

Customer support and the possibility to buy with fiat (euros, dollars...)

Disadvantages:

You do not actually control your cryptos (no keys = no coins)

Risks of hacking or regulatory blocking

🌐 Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, dYdX

How it works:

Use smart contracts for direct trading between users

No intermediary: you trade from your own wallet

Often based on AMMs (automated market makers)

Advantages:

You keep full control of your funds

More privacy (often without KYC)

Resistant to censorship

Disadvantages:

Less liquidity on certain tokens

Interfaces can be complex for beginners

Network fees (gas) can sometimes be high