#CEXvsDEX101 CEX vs DEX 101 explains the basic difference between two types of cryptocurrency exchanges:

CEX (Centralized Exchange)

• These are centralized platforms where a company controls the exchange.

• Users deposit their funds into the exchange, which acts as a custodian.

• They offer high liquidity, speed, and ease of use.

• Examples: Binance, Coinbase.

• Risks: vulnerability to hacks, centralized control, possible lack of privacy.

DEX (Decentralized Exchange)

• They operate without a central entity, functioning through smart contracts on the blockchain.

• Users maintain control of their funds at all times (do not deposit into the exchange).

• Greater privacy and resistance to censorship.

• Lower liquidity and speed compared to CEX, and they can be more complex to use.

• Examples: Uniswap, SushiSwap.

In summary, CEX offers convenience and speed with centralized control, while DEX prioritizes user autonomy and security without intermediaries.