#CEXvsDEX101 Centralized Exchange (CEX) vs 🌐 Decentralized Exchange (DEX)
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🏦 Centralized Exchange (CEX)
What it is:
A company runs the exchange — you create an account, deposit funds, and trade through their platform.
Examples:
Binance
Coinbase
Kraken
Bitfinex
How it works:
1. You deposit crypto or fiat (USD, EUR, etc.).
2. The exchange holds custody of your funds.
3. You place trades on their order book.
4. Withdraw when ready.
Pros:
✅ High liquidity
✅ Fast trades
✅ User-friendly (good UX/UI)
✅ Fiat on/off ramps
Cons:
❌ You don’t control private keys
❌ Custodial risk (exchange can be hacked/go bankrupt)
❌ Usually requires KYC (Know Your Customer)
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🌐 Decentralized Exchange (DEX)
What it is:
A protocol on a blockchain where users trade directly with each other — no middleman holds your funds.
Examples:
Uniswap
Curve
How it works:
1. You connect your wallet (MetaMask, WalletConnect
