#CEXvsDEX101
๐ CEXvsDEX101: Whatโs the Difference & Which One Should You Use?
In the world of crypto, CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two different beasts. Knowing the pros and cons of each can level up your trading game. Letโs break it down ๐
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๐ข Centralized Exchange (CEX)
โ Examples: Binance, Coinbase, Kraken
๐ Custodial โ they hold your crypto for you
โก Faster transactions, high liquidity
๐ ๏ธ Advanced trading tools and user-friendly UI
๐ต๏ธ Requires KYC/AML
๐จ Risk: Hacking, downtime, and third-party control
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๐ Decentralized Exchange (DEX)
โ Examples: Uniswap, PancakeSwap, dYdX
๐ Non-custodial โ you control your keys
๐ธ Peer-to-peer trading on-chain
๐ No KYC, more privacy
โ ๏ธ Lower liquidity, slower execution
๐ง Requires basic blockchain knowledge
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๐ So, which should YOU use?
๐ถ Beginner? CEX is easier and safer to start with.
๐ Privacy-focused or DeFi-native? Go DEX.
๐ผ Active trader? Use both for flexibility and arbitrage.
Pro tip: Use BNB to reduce fees on Binance (CEX), and hold some ETH for gas if youโre on Uniswap (DEX).
