#CEXvsDEX101 🔁 #CEXvsDEX101 – Know the Difference! 🔁

💡 Ever wondered how Centralized and Decentralized Exchanges differ?

In the crypto world, there are two major types of exchanges:

📌 CEX (Centralized Exchange) – e.g., Binance, Coinbase

📌 DEX (Decentralized Exchange) – e.g., Uniswap, PancakeSwap

Here’s a quick breakdown of CEX features:

🏢 CEX – Centralized Exchange

🔹 Central Authority:

Operated and controlled by a company or central entity

🔹 Custodial System:

Users deposit their funds, which are held by the exchange

🔹 Security:

Though secure, CEXs are more vulnerable to hacks due to centralization

🔹 Liquidity:

Generally offer higher liquidity and faster transactions

📌 Stay tuned for a comparison with DEX in the next post!

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