#CEXvsDEX101

Centralized vs. Decentralized Exchanges

CEXs (Centralized Exchanges) like Binance or Coinbase act as intermediaries, offering high liquidity, fast trades, and user-friendly interfaces but require KYC and control user funds. They’re prone to hacks and regulatory risks.

DEXs (Decentralized Exchanges) like Uniswap or PancakeSwap operate on blockchains, enabling peer-to-peer trading without intermediaries. Users retain custody of funds, ensuring privacy and security, but liquidity can be lower, and transactions slower due to on-chain processing.

Choose CEX for convenience, DEX for control & privacy.