#CEXvsDEX101 CEXvsDEX101
#CEXvsDEX101 Centralized exchanges (CEX) like Binance and Coinbase, and decentralized exchanges (DEX) like Uniswap and PancakeSwap. The fundamental difference between them lies in control, security, and privacy.
✅ Centralized exchanges (CEX):
- Easy to use for beginners.
- Support fiat/cryptocurrency transfers.
- Subject to regulations that may provide some protection.
- However, they require trust in a third party (depositing funds into the platform).
🛡️ Decentralized exchanges (DEX):
- You do not control your funds (you are solely responsible for your wallet).
- Direct trading between users without an intermediary.
- Highest level of privacy.
- However, they can be complex for beginners and lack support for traditional currencies.
Which one will you choose?
- If you prefer ease and high liquidity, then CEX is your choice.