Dex trading is a decentralised trading where you trading your tokens without the involvement of a third party, while CEX is like DEX but centralised and involves the permission of a third party which is a centralised exchange like Binance, Kucoin, Huobi or bybit. When using DEX in trading you dont need any KYC and there is no limit to how much you can trade, which gives you the total freedom. Whenever you are trading on DEX, all you have to pay is the gas fees, regardless of how much you are trading. For instance if you are trading over $1 Million on DEX, you pay the gas fees, set slippage and you are good to go. But whenever you are trading on CEX, if you are trading $1 Million for instance, on CEX, the exchange will take some certain percent as trading fees. So you will notice that on DEX you will almost have the same value you are trading compared to CEX. CEX will take about 2% as trading fees.
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On DEX, you control your assets, you can withdraw it anytime you want to withdraw it, even if the platform you are using decides to shut down, you dont have to worry about your asset shutting down, because, your asset is in your DEX wallet. Except your staked it on the site, but as long as you are trading on the DEX site, your asset is safe, even if the dex wallet you are using shuts down, you have your private keys, you can use your private keys to gain access to your assets on a different DEX wallet and get your funds back. But on CEX, when the platform shuts down say bye bye to your assets. Look at the case of FTX and other centralised crypto exchanges that crashed and investors never saw their funds anymore. But the ones that left their assets in DEX wallet still had their assets intact, not your keys, not your crypto.
But freedom they say comes with responsibility, just like DEX trading is decetralised and gives you freedom to your assets, it comes with great responsibility of protecting it and trying to secure it with good security. Security is what CEX offer, but its not guaranteed. You have to provide extra security to your DEX wallet to make sure it doesn’t get hacked by hackers.
