#CEXvsDEX101 : What You Need to Know

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When choosing between centralized (CEX) and decentralized (DEX) exchanges for trading cryptocurrencies, understanding the key differences is crucial.

**CEX (e.g., Binance, Coinbase)** operate as intermediaries, holding your assets. This provides convenience, high liquidity, and a familiar interface. However, you trust your funds to a third party, which carries the risk of hacking or regulatory pressure.

**DEX (e.g., Uniswap, PancakeSwap)** operate directly on the blockchain. You maintain full control over your private keys, enhancing security and privacy while eliminating counterparty risk. But DEX may be more complex for newcomers, have higher fees ("gas"), and lower liquidity.

Your choice depends on your priorities: **the convenience and speed of CEX** or **the security and autonomy of DEX**.