#TradingTypes101
CEX vs DEX compares centralized and decentralized cryptocurrency exchanges.
CEX (Centralized Exchange), like Binance or Coinbase, is managed by a central authority, offering high liquidity, user-friendly interfaces, and fast transactions, but requires users to trust the platform with their funds.
DEX (Decentralized Exchange), like Uniswap or PancakeSwap, operates without intermediaries, using smart contracts to enable peer-to-peer trading. DEXs offer greater privacy and control over assets but may have lower liquidity and slower speeds.
While CEXs are ideal for beginners, DEXs appeal to those prioritizing security and decentralization. Both play key roles in the crypto ecosystem.
