#CEXvsDEX101

In the cryptocurrency era, centralized (CEX) and decentralized (DEX) exchanges are the two main platforms where users can trade digital assets.

Centralized exchanges (CEX) work like traditional financial institutions. Here one company controls your funds, which makes trading easier and faster. Exchanges like Binance, Coinbase, and WazirX fall into this category. They have strict rules for security, but there is always a risk of hacking.

On the other hand, decentralized exchanges (DEX) are based on blockchain technology and are not controlled by any single authority. DEXs like Uniswap and PancakeSwap allow you to trade directly from your wallet, giving you full control over your funds. They have more security and transparency, but liquidity can sometimes be low.

In short, CEXs offer convenience and speed, while DEXs offer more control and security. The choice depends on your personal preferences and risk tolerance.