how to choose your fighter

And we will come back with another day of Crypto 101.

Yesterday, we covered the different kinds of crypto trade – if you missed you, catch you here. I am

And today, we look Where you can do it.

More specifically, we compare Cexs vs dexs – what are they, how they worked, their pros, Cons choose from each other.

Ready? We jump in 👇

Cex

Total government name: Centralized exchanges.

Here are your Chinese Crypto Crypto Trading Trading – as Bining, Kraken, Bybit, Mexcand it Change – Where most people start their crypto trip.

And as the name suggests, the Control of these platforms are centralized – A single entity runs the show, run your account, and makes the rules.

These platforms basically work Tinder for crypto trades. I am

When you want to buy or sell, use something called a order book – a list of which purchase and sells, and in which prices.

When your order corresponds to someone else, exchange if you connect both and trade happen.

However, most of the time, there I am not enough regular people who put the trades to keep things.

That’s why the cex if they trust Market Producers – usually bots or companies constantly put to buy and sell orders to ensure that there is always action in the order book.

They profits the price difference (named suddenly, they keep the understanding so you are not tossed waiting for ever that.

Now, when you buy crypto on a CEX, the coins don’t go straight in your personal wallet. Instead, they are kept in what is called a Low of custard– a bill checkout for exchange for you.

You can see your balance, Sever, but you Not actually not the keys to access the funds directly. I am

That’s why you often feel the phrase: “Not your keys, not your coins.” If something wrong happening oi crash of the platform (Hi, ftx 👋It)did you could lose access to your funds. I am

But in return for that trust, usually get a Swooter, experience more friendly: Fiat Payments, Credit Card Payments, Mobile Apps, Customer Suppliers, and also features as this to the interestfulness not to the interests not to your coins.

So, I get the check for the convenience.

Dexs

Total government name: Decentralized exchanges.

These are the platforms without central authority – no company do not rocks, no sign-ups, no forms asking for passport.

You are in full control. I am

(That is a bit the point of encryption in the first place.)

But how do they work without any thing running things?

Well, all that everything is fueled by Smart contracts – self-executing code on blockchain that processes all automatically.

When you are bad “exchange” the contrate contract controls if trade can, process, and if you are beautiful between the paraly.

Now, Dexs do not use the order books like the CEX. Instead, they trust something called Pools of liquidity. I am

Think about a liquidity pool as a vending machine that has been picked up with two different tokens – we say Etth and it USDC. I am

Instead of a company that fill the machine is regular users (called Liquity providers) that provide the two tokens that hoping to earn fees every time someone makes a trade.

When the trade, you are not treated with another person directly. You are just exchanging tokens with the machine – taking some USDC out, laying age, or Vice versa.

And the price? There is no one who manually put it out. The machine vending machine uses an integrated formula – called an Maker of the automated market (Amm) – that adjusts automatically based prices and demand. I am

If a lot of people purchase ethicals, the pool is running low in Eth, so the Am’s the price to reflect that.

And now, for the most difference: The dex are non-custodials. I am That means that you maintain the full control of your crip At all times. I am

Know your non-custodial wallet (similar) Metamask), approve the transaction, and the The trade occurs it directly between your wallet and clever contract. I am

There is kyc, and the exchange itself does not touch your private keys or hold your funds.

But freedom comes with risk. If you lose access to your wallet or messes a transaction, there No Support team to call. I am I am the one holding the keys and it the consequences.

To summarize:

	Oc	Dex
Who is in control?	The exchange	Did you
Creams	They have your crypto	You have
Facility of use	A lot of beginnings-friendly	Requires any basic crypto knowledge
Risky	Hacks, frozen accounts	User error, unsupport
Rates	Platform rates	Network gas fees

Choose your combatant 🥊

Now you are in the know. But think about your friends – probably have no idea. I wonder who could solve that … 😃🫵 Spread the word and be the hero you know you are!