#CEXvsDEX101
Understanding the Difference*
Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) operate differently:
- CEXs (e.g., Binance, Coinbase):
- Act as intermediaries, holding users' funds and executing trades
- User-friendly and fast
- Require trust in the platform
- DEXs (e.g., Uniswap, PancakeSwap):
- Enable peer-to-peer trading via smart contracts without a central authority
- Users retain control of their funds, enhancing privacy and security
- May have lower liquidity and slower speeds
The choice between CEXs and DEXs depends on your priorities: convenience, privacy, and control. Understanding both options can make you a more informed trader.
*Before Investing:*
- Conduct thorough analysis
- Don't risk more than you can afford to lose.