For any cryptocurrency trader, choosing between centralized exchanges and decentralized exchanges is a key decision. Each type of exchange has its own advantages and disadvantages in terms of security, user experience, liquidity, and control. Understanding when to use which exchange is an important part of risk-aware trading.

From experience, the advantages of centralized exchanges (CEX) are ease of operation, strong liquidity, and customer support, while the disadvantages include risks of platform failure and asset misappropriation; the advantages of decentralized exchanges (DEX) are that assets are held in one's own control and transactions are transparent, while the disadvantages are complex operations, lower liquidity, and a subpar trading experience.

I tend to choose based on needs: for small transactions and a pursuit of efficiency, I choose CEX; for large asset storage and a focus on privacy and security, I choose DEX. When choosing, I consider asset scale, transaction frequency, security needs, and requirements for operational convenience.

My advice for first-time DEX users is: start with small amounts to familiarize yourself with wallet creation, connection, and other operations; carefully verify contract addresses to avoid phishing attacks; and keep important information like mnemonic phrases secure to prevent asset loss. #Centralized vs. Decentralized Exchanges