#CEXvsDEX101 🔥 Centralized vs Decentralized Exchanges — Know the Difference!* 🔥

In the ever-evolving crypto space, two major exchange types dominate the scene: *Centralized Exchanges (CEX)* and *Decentralized Exchanges (DEX)*. Understanding how CEX and DEX coins function is critical for making informed investment and trading decisions.

🔵 *Centralized Exchanges (CEX)*

Examples: Binance, KuCoin, Coinbase

Native Coins: BNB (Binance), KCS (KuCoin)

*✅ Benefits:*

- User-friendly platforms ideal for beginners

- Deep liquidity for quick trade execution

- Access to advanced tools like futures, margin trading, etc.

*⚠️ Risks:*

- Centralized custody = vulnerable to hacks

- Subject to strict regulations and potential crackdowns

- Downtime or restrictions possible in certain jurisdictions

🟣 *Decentralized Exchanges (DEX)*

Examples: Uniswap, PancakeSwap, dYdX

Native Coins: UNI, CAKE, DYDX

*✅ Benefits:*

- True ownership: Your keys, your coins

- No sign-ups — complete privacy and autonomy

- Transparent, on-chain operations open to all

*⚠️ Risks:*

- Complex for newcomers

- May suffer from low liquidity or high slippage

- Some tokens may be unvetted or scammy

🔑 *Key Comparisons:*

- *Custody*: CEX controls funds; DEX gives you control