#CEXvsDEX101

🔁 CEX vs DEX 101 – What’s the Difference?

🏛️ CEX – Centralized Exchange

Examples: Binance, Coinbase, Kraken

Custody: You don’t hold your private keys — the exchange does.

Speed & Liquidity: High; better for active trading.

User Experience: Easy to use, beginner-friendly.

KYC/AML: Required — you must verify identity.

Risk: Centralized control = single point of failure (hacks, shutdowns).

🌐 DEX – Decentralized Exchange

Examples: Uniswap, PancakeSwap, dYdX

Custody: You control your assets — "Not your keys, not your coins."

Speed & Liquidity: Depends on network congestion and TVL.

User Experience: Requires Web3 wallet; more technical.

KYC/AML: Often none — more privacy, but also higher risk.

Risk: Smart contract bugs, impermanent loss — but no central control.

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🔍 Summary:

Feature CEX DEX

Custody Exchange-controlled User-controlled

Regulation Fully regulated Mostly unregulated

Privacy Low High

Security Risk Centralized failures Smart contract exploits

Speed/Liquidity Faster, deeper Slower, varies