#CEXvsDEX101

Centralized exchanges (CEXs) like Binance are operated by a central entity, offering higher liquidity, user support, and easier interfaces, but users must relinquish control of their funds. Decentralized exchanges (DEXs) function through blockchain smart contracts, allowing users to retain custody of their private keys, providing greater privacy and resistance to censorship. While DEXs prioritize security and user control, they can be more complex and less liquid than CEXs. CEXs are regulated and easier to use but pose higher risks of hacking. DEXs offer decentralization and privacy but may lack extensive support and face usability challenges.