#CEXvsDEX101 CEXvsDEX101: Centralized and Decentralized Exchange**

In the world of cryptocurrency, choosing between a centralized exchange (CEX) and a decentralized exchange (DEX) is an important decision. Each type of exchange has its own advantages and disadvantages, suitable for different user needs and goals.

### Centralized Exchange (CEX)

**Characteristics:**

- **Asset Management and Custody:** Managed by organizations and holds users' assets (custodial).

- **Identity Verification:** Requires identity verification (KYC) and personal information checks.

- **Trading Volume and Performance:** Provides high trading volumes and executes trades quickly.

- **Costs and Fees:** Often has higher fees for features and convenience.

- **Security:** Vulnerable to attacks but may provide support or compensation.

- **Convenience:** User-friendly interface suitable for beginners and easy to use.

- **Legal Compliance:** Adheres to strict regulations.

**Advantages:**

- Easy to use and suitable for newcomers.

- Supports trading between fiat and cryptocurrency.

**Disadvantages:**

- Higher trading fees.

- Risk of attacks and loss of assets.

### Decentralized Exchange (DEX)