CEX vs DEX 101
Centralized Exchanges (CEXs) like Binance and Coinbase are managed by companies, offering high liquidity, user-friendly interfaces, and customer support. However, they require users to trust the platform with their funds and personal data. Decentralized Exchanges (DEXs) like Uniswap and PancakeSwap operate without intermediaries, allowing peer-to-peer trading via smart contracts. Users retain control of their private keys, enhancing security and privacy. However, DEXs may have lower liquidity, fewer trading pairs, and a steeper learning curve. In essence, CEXs offer convenience and speed, while DEXs provide autonomy and decentralization. Choosing between them depends on your priorities and experience.
