#CEXvsDEX101

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Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) are two common types of services within the world of cryptocurrency trading. CEXs like Binance and Coinbase serve as intermediaries and offer a convenient interface with high liquidity and fast transactions; however, they require trust in the platform for the user’s money and information. DEXs, such as Uniswap or PancakeSwap, do not have intermediaries, thus allowing wallet-to-wallet trading and ensuring better control and privacy. On the downside, DEXs may have steeper learning curves, reduced liquidity, and higher fees. While CEXs offer rapid executions and ultimate convenience, DEXs provide users with self-custody and true decentralization of control. The decision of which one to choose depends on what a user prioritizes the most: control and security vs ease of use and speed. Both are important for the development of cryptocurrency in the future.