#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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