Crypto 101. Writing this by hand no AI assistance. Just off the top of the dome.
What's the difference between a DEX and a CEX?
A DEX is a decentralized exchange where you can use a DeFi wallet to perform anonymous transactions. Usually accessing your wallets with 12-24 word key phrases that are highly encrypted, or by using encryption keys.
A CEX is a centralized exchange, which usually requires KYC (Know Your Customer) verification. It's connected to your social security numbers, your ID's, etc...
The term DeFi, has now been complimented with the CeFi acronym. CeFi is a new term that represents centralized finance exchanges.
Benefits of DEX include anonymity. Self custodial wallets that never expire and allow you to manage things yourself. Under the assumption you're capable.
Risks including losing your wallet keys, being irresponsible with your own funds, being hacked outright and someone keylogging you or getting into hot wallets you have connected on whatever devices.
Benefits of a CEX include being doxxed, connecting to your bank account for quick purchases or withdrawals. Funds are usually insured on legitimate larger exchanges so you have to worry less about being exploited.
Risks include losing your funds for not "checking in" or logging into old accounts. If you don't keep them updated or agree to new TOS (Terms Of Service) then your account is subject to be forfeit. There is usually higher fees than DeFi. You sometimes need to ask for permission to spend/send your own $ until you have an already established account with good limits.
This all might sound difficult, and it can be.
Here was a free crypto 101. Some people might love it, some people might hate it, but that doesn't change it! Lol!
Crypto 101. Writing this by hand no AI assistance. Just off the top of the dome. ➡️🧠
What's the difference between a DEX and a CEX?
A DEX is a decentralized exchange where you can use a DeFi wallet to perform anonymous transactions. Usually accessing your wallets with 12-24 word key phrases that are highly encrypted, or by using encryption keys.
A CEX is a centralized exchange, which usually requires KYC (Know Your Customer) verification. It's connected to your social security numbers, your ID's, etc...
The term DeFi, has now been complimented with the CeFi acronym. CeFi is a new term that represents centralized finance exchanges.
Benefits of DEX include anonymity. Self custodial wallets that never expire and allow you to manage things yourself. Under the assumption you're capable.
Risks including losing your wallet keys, being irresponsible with your own funds, being hacked outright and someone keylogging you or getting into hot wallets you have connected on whatever devices.
Benefits of a CEX include being doxxed, connecting to your bank account for quick purchases or withdrawals. Funds are usually insured on legitimate larger exchanges so you have to worry less about being exploited.
Risks include losing your funds for not "checking in" or logging into old accounts. If you don't keep them updated or agree to new TOS (Terms Of Service) then your account is subject to be forfeit. There is usually higher fees than DeFi. You sometimes need to ask for permission to spend/send your own $ until you have an already established account with good limits.
This all might sound difficult, and it can be.
Here was a free crypto 101. Some people might love it, some people might hate it, but that doesn't change it! Lol! 🤝❤️
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