#CEXvsDEX101 # #CEXvsDEX101: A Comparison Between Centralized and Decentralized Exchanges

*Overview*

Centralized exchanges (CEX) and decentralized exchanges (DEX) are two main types of digital exchanges. In this topic, we will discuss the key differences between them.

*Centralized Exchanges (CEX)*

- *Description*: Centralized exchanges are trading platforms managed by companies or institutions, allowing users to buy and sell digital assets.

- *Advantages*: Centralized exchanges provide an easy-to-use interface, fast transaction execution, and customer support.

- *Disadvantages*: Centralized exchanges require users to trust the managing company and may be susceptible to security breaches.

*Decentralized Exchanges (DEX)*

- *Description*: Decentralized exchanges are trading platforms that operate on blockchain networks, allowing users to buy and sell digital assets without intermediaries.

- *Advantages*: Decentralized exchanges offer more security and transparency, as transactions are executed directly between users.

- *Disadvantages*: Decentralized exchanges may be more complex to use and may suffer from low liquidity.

*Comparison Between Centralized and Decentralized Exchanges*

- *Security*: Decentralized exchanges are considered more secure than centralized exchanges, as there is no intermediary that can be hacked.

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