#CEXvsDEX101 **CEX vs DEX 101** explains the fundamental differences between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs), core to cryptocurrency trading.

* **CEX (e.g., Binance, Coinbase):** Operated by a company. Users deposit funds, trusting the exchange to hold custody. Trades occur off-chain via an order book managed by the CEX. Offers fiat on/off-ramps, advanced features, and customer support. Requires KYC/AML verification. Vulnerable to hacks targeting the central custodian.

* **DEX (e.g., Uniswap, PancakeSwap):** Peer-to-peer platforms running on blockchains (often via smart contracts). Users retain custody of funds in their own wallets (self-custody). Trades settle directly on-chain, typically using Automated Market Makers (AMMs). Generally permissionless and anonymous. Security relies on the underlying blockchain and smart contract code.

Understanding this core distinction is essential for navigating crypto markets.