#CEXvsDEX101

🔄 Centralized vs. Decentralized Exchanges — What’s the Difference?

When trading crypto, you’ll use either a Centralized Exchange (CEX) or a Decentralized Exchange (DEX). Here's a quick breakdown:

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🏢 Centralized Exchange (CEX)

Managed by a company (e.g., Binance, Coinbase).

You create an account and deposit funds.

The platform matches and processes trades.

Easy to use but you don’t control your funds.

Pros: User-friendly, fast, high liquidity

Cons: Less privacy, risk of hacks, not fully in your control

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🌐 Decentralized Exchange (DEX)

No middleman — trades happen wallet-to-wallet using smart contracts (e.g., Uniswap, PancakeSwap).

No account needed, just connect your wallet.

You control your assets at all times.

Pros: More privacy, full control, no KYC

Cons: Less beginner-friendly, possible smart contract risks

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⚖️ Which to Choose?

Use CEX for ease and speed.

Use DEX for control and privacy.

Both have pros and cons — pick what fits your needs.