CEX (centralized exchange) and DEX (decentralized exchange) are the two basic types of crypto trading platforms. The difference comes down to who controls your funds.
CEX
Examples: Binance, Coinbase, Kraken. A company runs the platform, keeps records, requires KYC. Faster, better liquidity, supports card purchases. Downside: you don’t hold your private keys.
DEX
Examples: Uniswap, Jupiter, PancakeSwap. No central entity — trading happens directly from your wallet via smart contracts and liquidity pools. No KYC needed, you control your keys. Downside: lower liquidity, slower, smart contract risk.
When to Use What?
- CEX — card purchases, large amounts, futures trading
- DEX — smaller tokens, DeFi activities, privacy
Disclaimer: This is not financial advice. Always do your own research.