#CEXvsDEX101 CEXvsDEX101

Centralized Exchanges (CEXs) are platforms like Binance or Coinbase, acting as intermediaries where users trade crypto by depositing funds they don't directly control. They offer high liquidity, user-friendly interfaces, and traditional financial services, but come with counterparty risk and require KYC. Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap operate on blockchain, allowing peer-to-peer trading directly from user wallets, ensuring self-custody and anonymity. While more secure against hacks and censorship, DEXs often have lower liquidity, higher fees for small trades, and can be less intuitive for newcomers.