#CEXvsDEX101 CEX vs. DEX 101: Your Crypto Exchange Guide

Stepping into crypto? You'll encounter two main types of exchanges: Centralized (CEX) and Decentralized (DEX). Understanding their differences is key to smart trading.

Centralized Exchanges (CEX): Think of CEXs like traditional banks. Platforms like Binance hold your crypto, managing trades and providing customer support.

Pros: User-friendly interfaces, high liquidity for fast trades, easy fiat-to-crypto conversions, and advanced trading tools. They often have robust security measures and insurance funds.

Cons: You don't control your private keys ("not your keys, not your crypto"), meaning you trust the exchange with your assets. They also require identity verification (KYC/AML) and are subject to regulatory control