CEX vs DEX 101
What are CEX and DEX?
Cryptocurrency trading platforms come in two primary types: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).
CEX Characteristics
CEX, like Binance and Coinbase, offer user-friendly interfaces, high liquidity, and advanced features, but are vulnerable to security risks and regulatory issues.
DEX Characteristics
DEX, like Uniswap and SushiSwap, provide a trustless and decentralized environment, prioritizing security and control, but can be complex and have lower liquidity.
Choosing Between CEX and DEX
Consider your priorities: security and control or user experience and liquidity. Understanding the differences can help you make informed trading decisions.