CEX vs. DEX
Key Differences
Centralized Exchanges (CEXs): Operated by centralized entities, CEXs like Binance and Coinbase offer user-friendly interfaces, high liquidity, and support for fiat transactions. However, they require users to undergo Know Your Customer (KYC) procedures and entrust their assets to the exchange, which can pose security risks.
Decentralized Exchanges (DEXs): Platforms such as Uniswap and PancakeSwap allow peer-to-peer trading without intermediaries, offering greater privacy and control over assets. DEXs are generally more transparent and align with the decentralized ethos of blockchain technology. However, they may have lower liquidity and require a higher level of technical understanding from users.
