#CEXvsDEX101

A DEX (decentralized exchange) is a cryptocurrency trading platform between users, where there is no intermediary.

This is done directly on the blockchain using smart contracts such as Uniswap, Curve, etc.

The main features are:

Decentralization: No entity controls your assets; only you have access to them through a wallet like Binance Web3 wallet. (your keys, your crypto)

Peer-to-peer transactions: The exchange is done directly from user to user through the smart contracts applied on the blockchain.

Privacy: Most CEXs do not require KYC (identity verification)

Risks:

Difficulty: These exchanges are for experienced individuals in crypto.

Gas Fees: Charge of commissions in the native currency of the network for each transaction.

Malicious contracts: There is a risk of malicious manipulation of a smart contract.

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