#CEXvsDEX101
CEX vs DEX: Quick Comparison**
Centralized Exchange (CEX)**
✅ **Managed by a company** (e.g., Binance, Coinbase)
✅ **Higher liquidity & faster trades**
✅ **Fiat deposits & advanced features** (futures, staking)
❌ **Requires KYC** (identity verification)
❌ **Risk of hacks** (exchange holds your funds)
❌ **Higher fees** (~0.1%-0.5%)
Decentralized Exchange (DEX)**
✅ **No KYC – trade anonymously**
✅ **Self-custody – you control your keys**
✅ **Censorship-resistant** (no central authority)
❌ **Lower liquidity & slower trades**
❌ **Smart contract risks** (possible exploits)
❌ **Gas fees can be high** (on Ethereum)
### **Best for?**
🔹 **CEX** → Beginners, high-volume traders, fiat on-ramps
🔹 **DEX** → Privacy-focused users, DeFi traders, long-term holders
**Examples:**
- **CEX:** Binance, Coinbase, Kraken
- **DEX:** Uniswap, PancakeSwap, dYdX
**TL;DR:** CEX = convenience & liquidity; DEX = control & privacy. Many traders use both! 🚀
