#CEXvsDEX101 When trading crypto assets, one of the most important decisions is choosing between a centralized exchange (CEX) and a decentralized exchange (DEX). A CEX like Binance or Coinbase is operated by a company that manages users' funds and order books, offering high liquidity, fast trade execution, and user-friendly interfaces. However, it requires KYC and poses a custodial risk, meaning users don’t have full control over their assets.

In contrast, a DEX like Uniswap or PancakeSwap allows peer-to-peer trading using smart contracts. It offers greater privacy and gives full control of funds to users. However, DEXs often suffer from lower liquidity, slower execution, and may be confusing for beginners.