#CEXvsDEX101 Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two primary types of cryptocurrency trading platforms, each with its own advantages and drawbacks.

**CEX (Centralized Exchange)**: CEXs are operated by a company or entity that facilitates crypto trading while managing users' funds and transactions. Popular examples include Binance, Coinbase, and Kraken. They offer high liquidity, ease of use, and strong security measures but require users to trust the platform to safeguard their funds. CEXs often have strict regulations, require identity verification (KYC), and can be vulnerable to hacks.

**DEX (Decentralized Exchange)**: DEXs operate on blockchain technology, allowing users to trade directly without a central authority. Examples include Uniswap, PancakeSwap, and SushiSwap. They provide greater privacy, security, and censorship resistance since users retain control of their funds. However, DEXs typically have lower liquidity, complex interfaces, and may expose users to risks like impermanent loss and smart contract vulnerabilities.

Comparison:

- Security: CEXs have strong security but are prime targets for hacks, whereas DEXs eliminate custodial risks.

- Ease of Use: CEXs are user-friendly, while DEXs often require technical knowledge.

- Control: DEXs give users full control of assets, while CEXs hold funds on behalf of users.

- Regulation: CEXs comply with regulations, while DEXs operate with fewer legal constraints.