#CEXvsDEX101 Yes, this comparison is between centralized exchanges (CEX) and decentralized exchanges (DEX) - A brief explanation**
#### **1. Centralized Exchanges (CEX)**
**Examples:** Binance, Coinbase, Kraken
**Advantages:**
✅ **Ease of use** – Simple interfaces, support for traditional currencies (fiat).
✅ **High liquidity** – Faster buy/sell orders.
✅ **Advanced features** – Margin trading, futures contracts.
**Disadvantages:**
❌ **Custody of your funds** – The exchange controls your funds (risk of freezing or hacking).
❌ **Requires verification (KYC)** – You need an ID.
❌ **Centralized** – Subject to government oversight.
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#### **2. Decentralized Exchanges (DEX)**
**Examples:** Uniswap, PancakeSwap
**Advantages:**
✅ **Full control of your funds** – No intermediary involved.
✅ **No KYC** – Anonymous trading.
✅ **Unregulated** – Cannot be banned.
**Disadvantages:**
❌ **Difficult for beginners** – Requires a wallet (like MetaMask).
❌ **Limited liquidity** – Some tokens are hard to trade.
❌ **Network fees (Gas)** – Can be high at times.
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### **When to use either?**
- **CEX:** If you are a beginner or want fast and easy trading.
- **DEX:** If you prefer security and privacy or want to trade tokens not available on CEX.
**Conclusion:**
- **CEX = Ease and speed** (but you have to trust a third party).
- **DEX = Security and privacy** (but it is more complex).
Many use
