CEX vs DEX: where to trade
Centralized exchanges are easy. Decentralized exchanges are censorship-resistant. Most people should use both, for different reasons.
> Centralized exchanges (CEX)
Coinbase, Kraken, Binance, and their peers hold your crypto for you. Fast, cheap, and beginner-friendly, but they can freeze accounts, get hacked, or fail (see: FTX, Celsius, Mt. Gox). You do not truly own crypto you leave on an exchange.
> Decentralized exchanges (DEX)
Uniswap, Curve, Jupiter, and others are smart contracts. You keep custody in your own wallet and swap peer-to-contract. There's no signup, no KYC on most, and no counterparty risk — but higher fees, worse UX, and full responsibility for your own mistakes.
> Rule of thumb
Use a CEX to move between fiat and crypto, then withdraw to self-custody for anything you're not actively trading. Use a DEX when you want long-tail assets, on-chain composability, or you don't want a middleman able to freeze you.