#CEXvsDEX101

CEX vs DEX: Which is Better for Crypto Trading?

In the world of crypto, there are two main types of platforms for buying and selling digital assets: CEX (Centralized Exchange) and DEX (Decentralized Exchange). Both have their own advantages and disadvantages.

CEX (Centralized Exchange)

CEX is managed by companies like Binance, Coinbase, or Kraken. Users must register and submit personal data (KYC).

Advantages:

Easy to use and suitable for beginners

High liquidity and fast transactions

Many features (staking, margin, etc.)

Disadvantages:

Funds are stored on the platform (risk of hacking)

Low privacy due to mandatory KYC

Dependent on third parties

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DEX (Decentralized Exchange)

DEX like Uniswap or PancakeSwap allows direct trading between wallets, without intermediaries.

Advantages:

No KYC, more anonymous

Users have full control over assets

Transparent and blockchain-based

Disadvantages:

Can be difficult for beginners to use

High fees during network congestion

Liquidity can be low for new tokens