#CEXvsDEX101 #CEXvsDEX101
The main difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) comes down to how they are managed and how control is exercised over assets and trading operations.
š¹ Centralized Exchange (CEX)
ā Pros:
User-friendly: Easier to use, especially for beginners.
High liquidity: More buyers and sellers = faster trades.
Advanced features: Margin trading, derivatives, stop-loss, etc.
Customer support: Help available if you lose access or need help.
ā Cons:
Custodial: The exchange controls your private keys.
Security risk: Vulnerable to hacks (e.g., Mt. Gox, FTX).
Regulation: Subject to government control and KYC/AML requirements.
Downtime: Can go offline due to maintenance or shutdowns.