#CEXvsDEX101
The Difference Between Centralized and Decentralized Exchanges
In the world of cryptocurrencies, trading is divided into two main types of platforms: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX), each with its own advantages and disadvantages.
Centralized exchanges like Binance and Coinbase are managed by companies, providing user-friendly interfaces, high liquidity, and technical support. Users can easily deposit and withdraw funds, but they must verify their identity and deposit their funds into the platform's wallets, meaning they do not hold their private keys.
On the other hand, decentralized exchanges like Uniswap and PancakeSwap allow users to trade directly from their wallets without the need for an intermediary. They are considered more secure in terms of control over funds, but they can be complex for beginners and sometimes lack high liquidity or direct technical support.
The choice between CEX and DEX depends on your priorities: do you prefer convenience and support, or privacy and full control over your funds?
