#CEXvsDEX101
The hashtag #CEXvsDEX101 refers to a basic comparison or introductory guide between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) in the crypto space. Here's a quick breakdown:
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🔵 Centralized Exchange (CEX)
Examples: Binance, Coinbase, Kraken
Key Features:
Operated by a central authority.
Users create accounts and deposit funds.
Order books are managed by the exchange.
Faster transactions and higher liquidity.
Regulated (depending on jurisdiction).
Custodial: You don’t fully control your crypto.
Pros:
User-friendly interface.
High speed and efficiency.
Customer support.
Cons:
Vulnerable to hacks.
Requires trust in a third party.
KYC/AML requirements.
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🟣 Decentralized Exchange (DEX)
Examples: Uniswap, PancakeSwap, SushiSwap
Key Features:
Peer-to-peer trading via smart contracts.
Users trade directly from their wallets.
Non-custodial: "Not your keys, not your coins."
Often built on Ethereum or other smart contract blockchains.
Pros:
Greater privacy and control.
Resistant to censorship.
Lower risk of centralized hacks.
Cons:
Slower and less liquid.
Complex for beginners.
Limited customer support.
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🧠 TL;DR:
Feature CEX DEX
Custody Exchange holds your funds You hold your own funds
Ease of Use Very beginner-friendly Requires some experience
Speed & Liquidity Fast with high liquidity Slower, often less liquid
Security Centralized risk (hacks) Smart contract risks
Privacy Requires KYC No KYC in most cases
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Let me know if you want a graphic or more examples of each!
