#CEXvsDEX101

A CEX (Centralized Exchange) like Binance or Coinbase is operated by a company that manages user funds and trades. It’s user-friendly, supports fiat, and offers fast transactions with high liquidity. However, users don’t control their private keys, and there's a risk of hacks or regulatory shutdowns.

A DEX (Decentralized Exchange) like Uniswap or PancakeSwap runs on blockchain smart contracts, allowing users to trade directly from their wallets without intermediaries. It offers privacy, control, and censorship resistance but can be complex for beginners and lacks fiat support.

CEXs are better suited for new users and those needing fiat on-ramps, while DEXs appeal to experienced users who value decentralization and control. Security also differs—CEXs face centralized risks, while DEXs rely on smart contract integrity. The choice depends on your priorities: convenience vs control, fiat vs crypto, or compliance vs privacy. Many users now use both for flexibility.