#CEXvsDEX101 CEX vs DEX 101 (150 Words)

In the crypto world, exchanges are divided into two main types: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).

CEXs like Binance, Coinbase, and Kraken act as intermediaries, similar to traditional banks. They offer high liquidity, user-friendly interfaces, and customer support. However, they require users to complete KYC (Know Your Customer) and trust the exchange to hold their funds securely — which also makes them targets for hacks.

On the other hand, DEXs such as Uniswap, PancakeSwap, and SushiSwap operate without a central authority. Trades are peer-to-peer, and users retain full control of their private keys and funds. No KYC is required, offering greater privacy and decentralization. However, DEXs may have lower liquidity, higher slippage, and can be complex for beginners.

In summary, CEXs are convenient and fast, while DEXs offer more privacy and control. The best choice depends on your trading experience, goals, and risk tolerance.