#CEXvsDEX101

Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) are two primary platforms for trading cryptocurrencies, each with unique features and trade-offs. CEXs, like Binance or Coinbase, operate under a centralized authority, offering user-friendly interfaces, high liquidity, and customer support. However, they require users to trust the platform with their funds and personal data, posing security and privacy concerns.

On the other hand, DEXs like Uniswap or PancakeSwap operate without intermediaries, allowing users to trade directly from their wallets. They provide greater privacy and control over assets, but often have lower liquidity, limited fiat support, and can be less intuitive for beginners. Ultimately, the choice between a CEX and a DEX depends on a user’s priorities: convenience and liquidity, or privacy and decentralization.