#CEXvsDEX101 # CEX vs DEX 101 🏛️🔁🌐
When it comes to crypto trading, you'll hear two key terms: **CEX** (Centralized Exchange) and **DEX** (Decentralized Exchange). Here’s a breakdown to understand the **differences**, **pros**, and **cons** of each:
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## 🏛️ Centralized Exchange (CEX)
### 👉 Examples:
* Binance
* Coinbase
* Kraken
* Bybit
### 🔍 What it is:
A **company-operated** platform where users trade cryptocurrencies through a **central authority**.
### ✅ Pros:
* **User-Friendly**: Easy UI for beginners
* **High Liquidity**: Faster trade execution
* **Fiat Support**: Buy crypto with credit cards or bank transfers
* **Customer Support**: Help desks and account recovery
### ❌ Cons:
* **Not fully private** (KYC/AML required)
* **Custodial**: You don’t hold your own private keys ("Not your keys, not your crypto")
* **Risk of Hacks**: Centralized storage = potential target
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## 🌐 Decentralized Exchange (DEX)
### 👉 Examples:
* Uniswap
* dYdX
### 🔍 What it is:
A **peer-to-peer** platform where users trade directly via **smart contracts**—no middleman.
### ✅ Pros:
* **Non-Custodial**: You control your private keys
* **More Private**: Often no KYC required
* **Permissionless**: Anyone can list tokens and trade
### ❌ Cons:
* **Lower Liquidity** (especially for lesser-known tokens)
* **Slower Trades & Higher Fees** on some blockchains
* **Tech-Savvy Required**: More complex for beginners
* **No Recovery**: Lost keys = lost funds
## 🔁 Key Differences at a Glance:
| Feature | CEX | DEX |
| Control of Funds | Exchange | User |
| KYC/AML | Usually Required | Rarely Required |
| Liquidity | High | Varies |
| Speed | Fast | Can be slower |
| Fiat Support | Yes | No |
| Privacy | Low | High |
| Support | Available | Limited/None |
