#CEXvsDEX101 #CEXvsDEX101 – Centralized and Decentralized Exchanges: Understanding Correctly to Choose Correctly

When participating in the cryptocurrency market, you will often hear two concepts: CEX (Centralized Exchange) and DEX (Decentralized Exchange). So what is the difference between them?

CEX are centralized exchanges like Binance, Coinbase, or Kraken. They operate like banks, acting as intermediaries between buyers and sellers. CEX has a friendly interface, fast transaction speeds, good customer support, but users must entrust the control of their assets to the exchange – meaning if the wallet is not yours, then the coins are not entirely yours either.

DEX, such as Uniswap, PancakeSwap, or dYdX, are decentralized exchanges where transactions occur directly between users through smart contracts. No KYC is required, there is no intermediary holding the funds, you have full control of your wallet. However, DEX generally has lower liquidity, slower transaction speeds, and can be challenging for newcomers.

Choosing between CEX or DEX depends on the priority between convenience and asset control. Understanding both will help you trade more safely and effectively.

#CEXvsDEX101 #CryptoBasics