#CEXvsDEX101

When trading cryptocurrencies, you'll encounter two main types of exchanges: Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs).

CEXs—like Binance or Coinbase—act as intermediaries, managing your assets and offering a user-friendly experience with strong customer support. They typically provide high liquidity and low fees for common trades. However, since they control your funds, there's a risk of hacks or regulatory intervention.

DEXs, such as Uniswap or PancakeSwap, run on blockchain technology without a central authority. They give you full control over your private keys and assets, offering greater privacy and resistance to censorship. That said, DEXs can be less beginner-friendly, may have higher gas fees, and often offer lower liquidity for niche tokens.

Your choice between a CEX and DEX should reflect your priorities: convenience and support, or privacy and control.