#CEXvsDEX101
The **CEX (Centralized Exchanges)** and **DEX (Decentralized Exchanges)** are two types of cryptocurrency exchanges, each having its advantages and disadvantages. Here is a comparison :
šļø **CEX (Centralized Exchange)**
- Managed by a company or entity that controls the transactions.
- Offers a **smooth user interface**, suitable for beginners.
- More **liquidity**, allowing for fast and well-priced transactions.
- **Customer service** available in case of issues.
- Risk of **hacking** or misuse of funds (as the exchange holds your cryptos).
- Examples: Binance, Coinbase, Kraken.
š **DEX (Decentralized Exchange)**
- Operates via **smart contracts** on the blockchain, without intermediaries.
- You **keep total control** of your funds, without depositing on a platform.
- More **privacy**, as there is no registration or KYC (identity verification).
- Less liquidity and sometimes higher fees depending on the network.
- Slower transactions and sometimes complex for beginners.
- Examples: Uniswap, PancakeSwap, Curve.
š **How to choose?**
If you want an easy-to-use platform with a lot of liquidity, a **CEX** is more suitable. If you prioritize security and decentralization, then a **DEX** is a better option.
