#CEXvsDEX101

Centralized vs Decentralized Exchanges

🏢 CEX (Centralized Exchange)

Examples: Binance, Coinbase, Kraken

🔑 Key Features:

A company manages and operates the platform.

Users deposit funds into exchange wallets.

Fast trades, user-friendly interface.

Higher liquidity and customer support.

🔐 Pros:

Easy for beginners

Higher trading volume

Customer service and fiat support

⚠️ Cons:

You don’t control your private keys

Can be hacked

Requires KYC (identity verification)

🌐 DEX (Decentralized Exchange)

Examples: Uniswap, PancakeSwap, dYdX

🔑 Key Features:

No central authority — smart contracts power the platform.

You trade directly from your crypto wallet.

Peer-to-peer and anonymous.

🔐 Pros:

You keep control of your funds (non-custodial)

More privacy, no KYC

More access to new or niche tokens

⚠️ Cons:

Lower liquidity for some assets

Complex for beginners

Limited customer support