#CEXvsDEX101 When it comes to trading cryptocurrencies, you have two main options: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Both have their advantages and disadvantages, and the best choice for you will depend on your priorities and level of experience. In summary, how do they work?

• Centralized Exchanges (CEX)

CEXs operate like traditional banks or brokers, acting as intermediaries in transactions. You deposit your funds on the platform, and the exchange manages custody and trades.

• Decentralized Exchanges (DEX)

DEXs operate without a central authority, allowing users to trade directly with each other through smart contracts on the blockchain.