#CEXvsDEX101 CEX (Centralized Exchange)

Examples: Binance, Coinbase, Kraken

How it Works:

Operated by a centralized company.

Requires user registration and identity verification (KYC).

User funds are held in the exchange's custody.

Pros:

✅ High liquidity

✅ Fast transactions

✅ Easy to use for beginners

✅ Fiat on-ramps (buy with USD, etc.)

Cons:

❌ Less privacy

❌ Potential risk of hacks

❌ Not fully controlled by the user

Coin Pair Example: BTC/USDT on Binance – Fast execution and deep liquidity.

---

🔄 Dex (Decentralized Exchange)

Examples: Uniswap, Pancake swap, SushiSwap

How it Works:

Peer-to-peer trading on blockchain via smart contracts.

No central authority or KYC required.

User holds their own private keys and funds.