#CEXvsDEX101 In the cryptocurrency ecosystem, there are two main types of platforms for asset exchange: **centralized (CEX)** and **decentralized (DEX)**.
### 🔐 Centralized Platforms (CEX)
**Examples:** Binance, Coinbase, Kraken
They act as intermediaries that hold users' funds and manage transactions. They require identity verification (KYC) and offer high liquidity, quick execution, and a more user-friendly experience. However, the funds are under the control of the platform, which can be risky in case of hacks or regulatory blocks.
### 🔓 Decentralized Platforms (DEX)
**Examples:** Uniswap, PancakeSwap, dYdX
They allow trading without intermediaries, directly from a wallet like MetaMask. They provide greater privacy, total control over funds, and transparency. In return, they tend to have less liquidity, more complex interfaces, and depend on network performance.
**Which to choose?**
It depends on your priorities: a **CEX** offers convenience; a **DEX** offers sovereignty and privacy.
