#CEXvsDEX101

Crypto trading can take place on two main types of platforms: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). CEXs, like Binance or Coinbase, are operated by companies that act as intermediaries, offering high liquidity, user-friendly interfaces, and customer support. However, they require users to trust the platform with their funds and personal information. In contrast, DEXs, such as Uniswap or PancakeSwap, allow peer-to-peer trading directly from users’ wallets without a central authority, enhancing privacy and control but often with lower liquidity and more complex interfaces. Each type offers unique advantages depending on a trader’s needs and experience level.