#CEXvsDEX101
๐ง Introduction:
If you're new to crypto, youโve probably heard about CEX (Centralized Exchange) and DEX (Decentralized Exchange).
But whatโs the real difference, and which one should you use?
In this post, weโll break it down in simple #CEXvsDEX101
๐ข What is CEX (Centralized Exchange)?
A CEX is a traditional-style exchange where a company controls your crypto transactions. Examples: Binance, Coinbase, KuCoin.
โ User-friendly for beginners
โ High liquidity = faster trades
โ Customer support available
โ Requires KYC (identity verification)
โ You donโt fully control your wallet keys
๐ What is DEX (Decentralized Exchange)?
A DEX runs on blockchain โ no central authority controls it. Examples: Uniswap, PancakeSwap, SushiSwap.
โ You have full control over your funds
โ No KYC = more privacy
โ Access to new tokens early
โ More complex interface
โ Lower liquidity, can be slower
โ๏ธ CEX vs DEX โ Quick Comparison Table:
Feature CEX DEX
Control Platform controls assets You control assets
Security Strong, but custodian risk Depends on your wallet
KYC Required Not required
Speed & Liquidity High Medium to low
Ease of Use Beginner-friendly Requires experience
๐ก Final Thoughts:
Use CEX if:
You're a beginner, want ease of use, and need customer support.
Use DEX if:
You value privacy, control your own wallet, and want access to early DeFi projects.
> ๐ Pro tip: Many traders use both! Start with a CEX, learn the basics, and gradually explore DEXs.
