#CEXvsDEX101

Against DEX: Understanding the Differences in the World of Cryptocurrency

In the world of cryptocurrency, traders face a fundamental choice between two main types of trading platforms: centralized exchanges (CEX) and decentralized exchanges (DEX).

Centralized exchanges (CEX): Like Binance and Coinbase, they provide a user-friendly interface, high liquidity, and customer support. However, they require you to give up control of your private keys, meaning you have to trust the platform to safeguard your assets. They are also regulated and often require 'Know Your Customer' (KYC) procedures.

Decentralized exchanges (DEX): Like Uniswap and PancakeSwap, they allow you to trade directly from your own wallet, giving you full control over your assets. There is no central authority, enhancing privacy and reducing the risk of hacking. However, they may be less user-friendly, offer variable liquidity, and typically have higher gas fees.

The choice between CEX and DEX depends on your priorities: convenience and security in CEX, or sovereignty and decentralization in DEX.