#CEXvsDEX101 ### **Binance DEX vs. CEX: Key Differences**

Binance operates both a **Centralized Exchange (CEX)** and a **Decentralized Exchange (DEX)**, each with distinct features:

#### **Binance CEX**

- **Centralized control** – Binance manages funds, order matching, and security.

- **High liquidity & speed** – Faster trades with deep order books.

- **More features** – Supports spot, futures, margin trading, staking, and lending.

- **KYC required** – Users must complete identity verification.

- **Higher risk of hacks** – Custodial wallets are targets for attacks.

#### **Binance DEX**

- **Decentralized** – Runs on **Binance Chain**, users control private keys.

- **Non-custodial** – No KYC; trades via wallet connections (e.g., Trust Wallet).

- **Lower liquidity** – Smaller trading volumes than CEX.

- **Limited features** – Primarily spot trading, no advanced options.

- **Censorship-resistant** – No central authority can freeze funds.

- **CEX:** Better