#CEXvsDEX101

Let's break down the basics of CEX (Centralized Exchange) and DEX (Decentralized Exchange).

*CEX:*

A centralized exchange is an online platform where users can buy, sell, and trade cryptocurrencies. Examples include Binance, Coinbase, and Kraken. Key characteristics:

- Central authority controls transactions and user funds

- Typically requires Know-Your-Customer (KYC) verification

- Often offers more liquidity and faster transactions

- May charge higher fees

*DEX:*

A decentralized exchange operates on a blockchain, allowing peer-to-peer transactions without intermediaries. Examples include Uniswap and SushiSwap. Key characteristics:

- Decentralized, autonomous, and often community-driven

- Users maintain control over their funds

- Typically doesn't require KYC verification

- May have lower liquidity and slower transactions