#CEXvsDEX101 Here's a breakdown of CEX (Centralized Exchange) vs DEX (Decentralized Exchange) — a "101" level guide:
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🔄 CEX vs DEX: Overview
Feature CEX (Centralized Exchange) DEX (Decentralized Exchange)
Control Operated by a central authority Operated by smart contracts, no middleman
Examples Binance, Coinbase, Kraken Uniswap, PancakeSwap, dYdX
Custody You give control of your crypto You keep control of your wallet/private keys
KYC/AML Usually required Usually not required
Ease of Use Very beginner-friendly Can be complex for beginners
Liquidity Typically higher Depends on protocol & user base
Speed Fast (off-chain order books) Slower (on-chain transactions)
Security Risk Target for hacks (centralized) Safer from hacks, but smart contract bugs possible
Fees Can be higher Usually lower, but varies
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🏦 What is a CEX?
A centralized exchange is like a traditional bank or brokerage. You:
Deposit your funds
Trade on their platform
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