Centralized exchanges (CEX) such as Binance and Huobi are managed by the platform, which centralizes user funds and trading data. They provide order matching and deposit/withdrawal services, attracting a large number of users with their efficient trading matching systems and a wide range of trading pairs. However, since the platform controls the private keys, there are risks of fund misappropriation and hacking attacks. If any issues arise with the platform, the security of user assets is concerning.

Decentralized exchanges (DEX) rely on blockchain technology, allowing users to control their private keys and store their assets in personal wallets. Transactions are completed through smart contracts, eliminating the need for third-party trust, thus ensuring asset control. Platforms like Uniswap and PancakeSwap provide publicly transparent and immutable trading data. However, DEXs often face issues such as insufficient trading depth, complex operations, and slow transaction speeds, and they lack comprehensive customer service and regulatory mechanisms.

Both centralized and decentralized exchanges have their advantages and disadvantages. The former focuses on efficiency and service, while the latter emphasizes security and autonomy, allowing users to choose based on their own needs.