#CEXvsDEX101

CEXvsDEX101 refers to the fundamental differences between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) in the world of cryptocurrency. 🪙

CEXs, like Binance or Coinbase, are traditional platforms operated by a central company. They offer user-friendly interfaces, high trading volumes (liquidity), and often allow fiat (e.g., USD, EUR) to crypto transactions. However, users entrust their funds to the exchange, requiring Know Your Customer (KYC) verification and posing a potential security risk if the exchange is hacked.

DEXs, such as Uniswap or PancakeSwap, operate without a central authority, enabling peer-to-peer trading directly from users' wallets via smart contracts. This offers greater user control, enhanced privacy (often no KYC), and access to a wider array of tokens. Conversely, DEXs can be less intuitive for beginners, may have lower liquidity, and primarily support crypto-to-crypto trades. The choice depends on individual priorities: ease and features (CEX) versus control and privacy (DEX).