#CEXvsDEX101

Centralized Exchanges (CEXs) are managed by companies that facilitate crypto trading through user-friendly platforms, offering high liquidity, fiat integration, and customer support. However, they require Know Your Customer (KYC) verification and hold users' funds, introducing custodial risks.

In contrast, Decentralized Exchanges (DEXs) operate without intermediaries, allowing peer-to-peer trades directly from users' wallets. They prioritize privacy, as no personal information is required, and users retain control over their assets. While DEXs offer lower fees and enhanced security against centralized hacks, they may have lower liquidity and require more technical knowledge.

Choosing between a CEX and DEX depends on individual preferences for convenience, control, and privacy.