$BTC Centralized and Decentralized Exchanges Centralized exchanges (CEX) are operated by a central authority, where users need to deposit their assets on the platform. They offer fast transaction speeds and high liquidity, such as Binance and Huobi. However, there are risks of asset theft and market manipulation.

Decentralized exchanges (DEX) are based on blockchain technology, allowing users to control their private keys and assets, with transactions completed on-chain, such as Uniswap and PancakeSwap. While they are safer and more transparent, they tend to have slower transaction speeds and limited liquidity.

Both have their pros and cons; centralized exchanges are suitable for beginners and high-frequency trading, while decentralized exchanges cater to users who prioritize privacy and asset control. In the future, there may be a trend towards integration, forming a hybrid trading model.