In the crypto world, the options for trading are varied, highlighting Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).
CEX (e.g., Binance) operate like traditional banks: a centralized company holds your funds, facilitating trading with high liquidity, user-friendly interfaces, and customer support. However, they involve KYC (identity verification) and custody risk (if the platform is hacked, you lose your funds).
DEX (e.g., Uniswap) operate on the blockchain through smart contracts. There are no intermediaries, and you maintain full control of your funds ("not your keys, not your coins"), ensuring anonymity and resistance to censorship. Their disadvantages include lower liquidity, more complex interfaces, and a steeper learning curve.
The choice between CEX and DEX depends on your priorities: convenience and liquidity vs. privacy and autonomy.
