#CEXvsDEX101

CEX vs DEX — What’s the Difference?

Centralized Exchanges (CEX) like Binance, Coinbase, and Kraken are run by companies. You gotta sign up, do KYC, and your funds are held by the exchange.

Pros:

✅ Super high liquidity

✅ Fast trades

✅ Beginner-friendly

✅ You can buy crypto with USD easily

Cons:

❌ Less privacy

❌ Risk of hacks

❌ You don’t fully control your funds

Example: Trading BTC/USDT on Binance means quick execution and deep liquidity.

Decentralized Exchanges (DEX) like Uniswap, PancakeSwap, and SushiSwap run on smart contracts — no company in charge. You trade directly from your wallet, no KYC needed.

Pros:

✅ More privacy & control

✅ Open to everyone

✅ Usually lower fees

Cons:

❌ Lower liquidity

❌ Slower trades

❌ Watch out for impermanent loss and scams

Example: Trading $PEPE/$ETH on Uniswap is direct wallet-to-wallet.

Which do you prefer and why? Let’s discuss!

#CEXvsDEX101 #CryptoTrading #BinanceSquare