#CEXvsDEX101 Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two key types of platforms for trading cryptocurrencies. A CEX, like Binance or Coinbase, acts as a middleman, managing users’ funds and trades through a centralized system. These platforms are user-friendly and offer high liquidity, but require users to deposit their funds and trust the platform’s security.

On the other hand, DEX platforms, such as Uniswap or PancakeSwap, allow users to trade directly from their wallets without intermediaries. Built on blockchain technology, DEXs support peer-to-peer trading through smart contracts, offering more privacy and control. However, they often have lower liquidity and can be less intuitive for beginners.

Understanding the basics of both exchange types helps users choose the right platform based on their needs—security, ease of use, or control over assets. Both play essential roles in the crypto ecosystem, catering to different preferences and levels of experience.