#CEXvsDEX101

Centralized Exchanges (CEX) like Binance act as middlemen, offering high liquidity, user-friendly interfaces, and faster trades. They handle custody of funds, meaning users trust the platform’s security. However, CEXs are vulnerable to hacks and regulatory restrictions. Decentralized Exchanges (DEX) like Uniswap operate without intermediaries, enabling peer-to-peer trades directly on the blockchain. Users retain control of their private keys, enhancing security and privacy. DEXs offer access to a broader range of tokens but often have lower liquidity and slower transactions. Choosing between CEX and DEX depends on user priorities—ease and speed versus control and decentralization.