#CEXvsDEX101

Centralized Exchanges (CEXs) like Binance or Coinbase act as intermediaries between buyers and sellers, offering high liquidity, user-friendly interfaces, and customer support. They require users to create accounts, pass KYC (Know Your Customer) checks, and trust the platform with their funds. This centralized control can lead to faster transactions but also exposes users to hacks, fraud, or asset freezes.

Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap operate without intermediaries, using smart contracts on blockchains. Users retain full control of their private keys and trade directly from their wallets. DEXs offer greater privacy and censorship resistance but can be less intuitive, with lower liquidity and slower trade execution for some tokens.

CEXs are ideal for beginners or those needing fiat on/off ramps. DEXs suit users who prioritize decentralization, privacy, and self-custody. Both play critical roles in the crypto ecosystem, and choosing between them depends on individual needs and preferences.