#CEXvsDEX101 The choice between a CEX (Centralized Exchange) and a DEX (Decentralized Exchange) depends on the user's priorities. CEXs, like Binance or Coinbase, offer intuitive interfaces, high liquidity, and support for fiat, making them ideal for beginners. However, they involve trusting funds to a third party and require identity verification (KYC), with risks of hacks and regulation.
On the other hand, DEXs, like Uniswap, allow trading directly from the wallet, maintaining custody of the assets and ensuring greater privacy. Although they offer lower liquidity and a steeper learning curve, their decentralized nature makes them resistant to censorship. Security in DEXs relies on smart contracts, while in CEXs it depends on the platform's measures.