#CEXvsDEX101

What are the main differences between CEX and DEX platforms

## Main Differences Between CEX and DEX Platforms

**1. Control of Funds**

- CEX: The exchange holds custody of your assets and manages private keys for you.

- DEX: You control your own assets and private keys at all times.

**2. Privacy & KYC**

- CEX: Requires user identification and KYC verification, reducing privacy.

- DEX: No ID checks; trading is generally anonymous.

**3. Liquidity**

- CEX: Typically offers higher liquidity and faster trades due to a larger user base and centralized order books.

- DEX: Lower liquidity, which can result in price slippage, especially for large trades or less popular tokens.

**4. Security**

- CEX: More prone to hacks since assets are stored centrally, but offers customer support and recovery options.

- DEX: Less vulnerable to centralized hacks, but users are responsible for their own security; loss of private keys means loss of funds.

**5. Fees**

- CEX: Usually higher platform fees, but no blockchain gas fees for trades.

- DEX: Lower platform fees, but users pay blockchain gas fees, which can vary.

**6. Usability**

- CEX: More user-friendly, with easier interfaces and customer support—better for beginners.

- DEX: Requires more technical knowledge and wallet management skills.

**7. Regulation**

- CEX: Heavily regulated and compliant with local laws.

- DEX: Mostly unregulated, offering more freedom but less legal recourse.

**8. Fiat Access**

- CEX: Supports fiat-to-crypto transactions, making it easy to start with traditional money.

- DEX: Crypto-to-crypto only; users must already own crypto to trade.

In summary, CEXs are centralized, user-friendly, and regulated, but require trust and offer less privacy. DEXs provide more privacy and control, but demand greater user responsibility and technical skill.