#CEXvsDEX101

Let's dive into the differences between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX):

*Centralized Exchanges (CEX)*

- Pros:

- User-friendly interface

- High liquidity

- Fast transaction processing

- Cons:

- Central point of failure (hacking risk)

- Custodial risk (loss of funds)

- Regulatory risks

- Potential for manipulation

*Decentralized Exchanges (DEX)*

- Pros:

- Trustless and non-custodial (users control funds)

- Decentralized, reducing single-point failure risk

- Increased security and transparency

- Censorship-resistant

- Cons:

- Complexity (steeper learning curve)

- Lower liquidity (compared to CEX)

- Slower transaction processing

When to use each:

- CEX: Suitable for beginners, high-frequency traders, and those prioritizing liquidity.

- DEX: Ideal for users valuing decentralization, security, and control over funds.

Which one do you prefer?