CEX vs DEX 101
Centralized exchanges (CEXs) and decentralized exchanges (DEXs) are platforms for buying, selling, or exchanging cryptocurrencies, but they operate in distinct ways. CEXs, like Binance and Coinbase, act as intermediaries, offering greater liquidity, customer support, and ease of use, but require custody of funds and identity verification. On the other hand, DEXs, like Uniswap and PancakeSwap, operate without intermediaries, using smart contracts to facilitate direct trading between users. This ensures greater privacy and control over assets, but may involve greater technical complexity and less liquidity. Each model has advantages and disadvantages, depending on the user's needs.
