🏛️ CEX vs DEX 101 – What’s the Difference?
As a crypto trader or investor, you’ll often hear about CEXs (Centralized Exchanges) and DEXs (Decentralized Exchanges). But what’s the real difference?
🔹 CEX – Centralized Exchange
Think of Binance, Coinbase, or Kraken.
✅ User-friendly: Easy to use, fast transactions
🛡️ Custodial: The platform holds your crypto
🔁 High liquidity: Better prices and faster trade execution
🔐 KYC required: You’ll need ID verification for most features
Use when: You want convenience, fast support, or to trade large volumes securely.
🔸 DEX – Decentralized Exchange
Examples: Uniswap, PancakeSwap, dYdX
🔓 Non-custodial: You hold your own private keys
📉 Permissionless: Anyone can trade without ID
💡 Built on blockchain: Runs on smart contracts
⚠️ Risk: Slippage, scam tokens, and no customer support
Use when: You value privacy, decentralization, and direct wallet-to-wallet trading.
⚖️ Key Differences
Feature CEX DEX
Control Platform controls funds You control your funds
Speed Fast and optimized Slower, depends on network
Security Secure but custodial risk No custody, but user risk
KYC/AML Usually required Often not required
Token access Vetted listings Wide range, including new
🤔 So, Which Is Better?
Beginners → Start with a CEX for ease and safety.
Advanced users → Explore DEXs for full control and early token access.
