#CEXvsDEX101

Centralized exchanges (CEX) are platforms managed by an entity that acts as an intermediary, safeguarding the funds and executing user orders. Examples include Binance or Coinbase. They offer high liquidity, speed, and ease of use, but involve trusting a third party. In contrast, decentralized exchanges (DEX), such as Uniswap or PancakeSwap, allow users to trade directly with one another through smart contracts, without intermediaries. They provide greater privacy and control over funds, although they tend to have lower liquidity and may be more complex to use. The main difference is custody: centralized in CEX and user-controlled in DEX.