#CEXvsDEX101 CEX vs DEX: What is the difference and what to choose?

In the world of cryptocurrencies, there are two main types of exchanges — centralized (CEX) and decentralized (DEX). Understanding their differences will help each user choose the most suitable platform for trading.

CEX (Centralized Exchange) — these are exchanges like Binance, Bybit, or Coinbase. They are managed by companies and act as intermediaries in transactions. The advantages of CEX are high liquidity, a user-friendly interface, support for fiat currencies, and high order execution speed. However, they also have downsides: the user does not control their private keys, and there is a risk of hacking or account blocking.

DEX (Decentralized Exchange) — these are platforms like Uniswap, PancakeSwap, or 1inch, where trading occurs directly between users (P2P) without intermediaries. The main advantages of DEX are anonymity, full control over funds, and no need for verification. However, they may be less convenient for beginners, with lower liquidity and a more complex interface.

The choice between CEX and DEX depends on your goals, experience, and priorities. If simplicity and speed are important to you — choose CEX. If you value privacy and control — DEX will be the better solution.