#CEXvsDEX101 CEXvsDEX101 CEX vs DEX: What’s the Difference?

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are platforms for trading cryptocurrencies, but they operate differently. CEXs like Binance and Coinbase are managed by companies that act as intermediaries, offering high liquidity, fast transactions, and user-friendly interfaces. They often require KYC (Know Your Customer) verification, which can compromise user privacy.

On the other hand, DEXs such as Uniswap and PancakeSwap run on blockchain smart contracts and allow peer-to-peer trading without intermediaries. They offer greater privacy and control over assets but may have lower liquidity and slower execution speeds. DEXs are also more resistant to censorship and hacking, since users hold their own keys.