#CEXvsDEX101

✅ Centralized Exchanges (CEX)

Examples: Binance, Coinbase, Kraken

How it works: Operated by companies that act as intermediaries

Pros:

User-friendly interface

Higher liquidity

Faster trades and customer support

Cons:

Requires KYC (identity verification)

You don’t hold your private keys

More vulnerable to hacks

✅ Decentralized Exchanges (DEX)

Examples: Uniswap, PancakeSwap, dYdX

How it works: Peer-to-peer trading with smart contracts, no central authority

Pros:

No KYC required

You control your private keys

Censorship-resistant

Cons:

Can be harder for beginners

Lower liquidity

Slower and costlier on certain networks

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🔑 Quick Tip:

> “Not your keys, not your crypto.”

If you want full control over your assets, DEX is the way.

If you prefer convenience and support, CEX might be your pick.

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