Understanding the difference between centralized exchanges (CEXs) and decentralized exchanges (DEXs) is crucial for anyone navigating the crypto space. CEXs like Binance or Coinbase offer user-friendly interfaces, high liquidity, and customer support — ideal for beginners. However, they require users to give up custody of their assets. On the other hand, DEXs such as Uniswap or PancakeSwap empower users with full control over their funds through non-custodial wallets and smart contracts. While DEXs offer greater privacy and decentralization, they can be more complex and may have lower liquidity. Knowing when and how to use each platform is key to smart trading.
