#CEXvsDEX101

🏛 CES vs DEX 101

1. Definition

CES (Centralized Exchange):

A cryptocurrency exchange that is operated by a centralized organization (like Coinbase, Binance, or Kraken). They manage user funds and execute trades on their servers.

DEX (Decentralized Exchange):

A peer-to-peer marketplace built on blockchain where users trade crypto directly with one another without intermediaries (e.g., Uniswap, PancakeSwap, SushiSwap).

2. Custody of Funds

CES:

Custodial – The exchange holds your funds and private keys.

DEX:

Non-custodial – You retain control of your funds; trades happen directly from your wallet.

3. User Experience

CES:

Easier to use, especially for beginners. Offers customer support, fiat on-ramps, and advanced trading tools.

DEX:

More technical interface. Requires knowledge of wallets (e.g., MetaMask) and gas fees. No direct fiat access.