#CEXvsDEX101
Two types of exchanges that you use for trading cryptocurrencies
Centralized and decentralized exchanges, these are the two types of exchanges we use for trading cryptocurrencies.
Centralized exchanges, like Binance and Coinbase, are managed by a central company or organization, meaning you have to log in and deposit your funds into your account on the platform, and then you can buy and sell cryptocurrencies.
On the other hand, decentralized exchanges, like Uniswap and Bancor, are not managed by a central company, meaning you can buy and sell cryptocurrencies without the need for an intermediary.
Decentralized exchanges use smart contracts to execute trades, and everything happens directly between users.
The advantages of centralized exchanges are that they are easy to use, have a user-friendly interface, and offer many tools and features for users.
But the disadvantages are that you have to trust the company managing the platform, and it may be susceptible to hacking or failure.
The advantages of decentralized exchanges are that they are more secure, as you do not need to deposit your funds into an account on the platform, and everything happens directly between users.
But the disadvantages are that they may be more complex to use, and they may have higher transaction fees.
