#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) represent two distinct approaches to cryptocurrency trading.

CEX (e.g., Binance): These are platforms managed by a company. They offer high liquidity, user-friendly interface, customer support, and fiat-crypto conversion. However, they require KYC (identity verification) and hold your funds, exposing you to hacking or blocking risks.

DEX (e.g., PancakeSwap): They operate on blockchain through smart contracts. They offer greater privacy (often without KYC) and total control over your funds, as you hold the private keys. The trade-off is potentially lower liquidity and a less intuitive interface for beginners.

The choice depends on your priorities: convenience and support (CEX) or privacy and control (DEX). Many traders use both.