#CEXvsDEX101
First of all, we need to know that there are two types of cryptocurrency exchange platforms:
1-. Centralized Exchange or CEX
2.- Decentralized Exchange or DEX
▶️ BINANCE or COINBASE are "Centralized Exchange" or CEX platforms, that is, centralized exchanges because?? ...
.. Because in them, a team controls and manages the transactions and the funds. Additionally, users create accounts and trust them to store their cryptocurrencies 💰
▶️ UNISWAP, to name one, is on the other hand a "Decentralized Exchange" or DEX platform, that is, a decentralized exchange because?? ..
.. Because they operate without central control; this type of platform allows exchanging cryptocurrencies with each other, using smart contracts and another detail is that here the funds remain in the users' wallets, not on the platform.
What difference can we see?? 👀
- The main one, CEX is easier to use and faster 🫰 of course, but it requires trusting the platform...
- DEX on the other hand offers greater privacy and control 👌 but can be a bit more complex for beginners..
If we look closely, both have their advantages and disadvantages and the choice of the platform to use will depend on the user's needs 😉.
