When you start to get interested in crypto, you have two options.
I'm not going to talk about the blue pill and the red pill, I'm going to discuss CEX and DEX.
Binance, crypto.com, bybit, iZichange, Bitget... these are a few examples of CEX, centralized crypto exchange platforms.
The thing with them is that they are like banks, with a little more freedom...
You buy your assets and entrust them to them, and they take care of them for you. They are equipped with various features of very interesting yields that you can try to maximize your profits.
⚠️Warning: Before choosing a CEX, know that you risk losing your funds if they suffer an attack like a bank when it goes bankrupt, but today several platforms have published their proof of reserves to prove that clients' funds are secure since the incident with FTX. Binance also has a dedicated fund for reimbursing these users in case of a serious hack, in addition to proof of reserves.
When approaching DEXs, the equivalent of the open sea, we can mention big names like pancakeswap, uniswap… they are actually decentralized platforms, they are the complete opposite of CEXs, because here you have control, total freedom to do everything without limit on amount.
How?
To interact with DEXs, you first need a wallet, so you hold your keys, you are solely responsible for your assets, security, and loss of your funds.
I must remind you of this:
⇒DEXs are more easily exploitable by hackers, a security flaw in the protocol and you will be easy victims.
⇒Hackers can make a copy of the site or platform, and if you are not careful when interacting with the wrong one, you are already ruined.
⇒they may have liquidity problems for large swaps, so be very careful about slippage.
How to protect yourself🛡️?
⇒ Always check that the protocol is well audited by reputable companies in the industry.
⇒Check if the URL of the platform is the official one, you can go to coinmarketcap and search for the protocol there first and copy the link or click directly on it, it's the same result, you will just connect the wallet afterwards.
⇒Regarding slippage, check the transaction volume of the platform in 24 hours before making large swaps; for small amounts, you can adjust the rate yourself, but be aware that if you reduce it too much, your transaction may fail, but they will still charge the fees.
In short, depending on your desires, choose what suits you best, entrust your funds to a CEX or venture into the open sea with DEXs, it all depends on you.
As @CZ says, STAY SAFU!