#CEXvsDEX101 CEXvsDEX101
### 🏢 **CEX (Centralized Exchange)**
*Examples: Binance, Coinbase*
- **Custody**: They hold your crypto.
- **KYC**: Identity verification required.
- **Liquidity**: High (deep order books).
- **Fees**: Trading fees (+ withdrawal fees).
- **Use Case**: Fiat on/off-ramps, beginners, high-volume trading.
### 🔄 **DEX (Decentralized Exchange)**
*Examples: Uniswap, PancakeSwap*
- **Self-Custody**: You control keys (via wallets like MetaMask).
- **No KYC**: Anonymous (but public blockchain).
- **Liquidity**: Pool-based (users provide tokens for fees).
- **Fees**: Gas fees (network cost) + LP fees.
- **Use Case**: Privacy, token swaps, DeFi integration.
### ⚖️ **Key Trade-offs**
- **CEX**: Easier but less control.
- **DEX**: Sovereign but complex (slippage, scams).
- **Security**: CEXs face hacks; DEXs face smart contract risks.
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