#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchanges. Here's a brief overview:
*CEX (Centralized Exchange)*
- A centralized platform where users can buy, sell, and trade cryptocurrencies.
- Operated by a single entity, which manages the exchange's infrastructure and security.
- Examples: Binance, Coinbase, Kraken.
*DEX (Decentralized Exchange)*
- A decentralized platform that enables peer-to-peer transactions without intermediaries.
- Operates on blockchain technology, allowing for secure and transparent transactions.
- Examples: Uniswap, SushiSwap, PancakeSwap.
Key differences:
- *Centralization*: CEX is controlled by a single entity, while DEX operates on a decentralized network.
- *Security*: CEX stores users' funds in a centralized wallet, while DEX uses smart contracts to facilitate transactions.
- *Regulation*: CEX is subject to regulatory requirements, while DEX operates in a more decentralized and often unregulated environment.