#CEXvsDEX101 Centralized Exchange (CEX)

Examples: Binance, Coinbase, Kraken, KuCoin

✅ Features:

Operated by a company or central authority.

Users create accounts and deposit funds into the exchange.

Order books match buyers and sellers.

Fiat integration: Easier to buy crypto with traditional currency.

Offers customer support and typically more user-friendly.

⚠️ Drawbacks:

Custodial: You don’t fully control your funds. “Not your keys, not your coins.”

Requires KYC: Identity verification.

Susceptible to hacks or government shutdowns.

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🔁 Decentralized Exchange (DEX)

Examples: Uniswap, PancakeSwap, SushiSwap, dYdX

✅ Features:

No central authority. Operates via smart contracts.

Non-custodial: You retain full control of your wallet and keys.

Anonymous: Usually no KYC required.

Trades are peer-to-peer, often through liquidity pools.

⚠️ Drawbacks:

No customer support. If you lose funds, there’s no help.

Higher risk for beginners due to complexity.

Often limited to crypto-to-crypto trades (no fiat).