#CEXvsDEX101

CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchange platforms that have different approaches. CEX like Binance, Coinbase, or Indodax operates with a centralized structure, meaning there is a third party that regulates and stores user assets. Its advantages are high liquidity, transaction speed, and a user-friendly interface.

In contrast, DEX like Uniswap, PancakeSwap, or dYdX operates without intermediaries, all transactions are conducted peer-to-peer on the blockchain. Its advantages are privacy and full control over assets because users store assets in personal wallets, not on the exchange.

However, DEX usually has lower liquidity, and gas fees can be higher depending on the network. Meanwhile, CEX is more vulnerable to hacking because all funds are stored in one system. Understanding the differences between the two is important to choose a platform that suits your needs and trading style.