#CEXvsDEX101

In the world of cryptocurrencies, there are two main types of exchanges: centralized (CEX) and decentralized (DEX). Both options have their advantages and disadvantages.

CEX (such as Binance, Kraken) provide high liquidity, convenience, and trading speed, but require trust in a centralized platform that holds your funds. This creates potential risks, such as hacking or asset freezing.

DEX (for example, Uniswap, PancakeSwap), on the other hand, operate without intermediaries. You maintain control over your funds, and transactions occur directly between users. However, they may have lower liquidity and a more complex interface for beginners.

Which type of exchange to choose depends on your goals, level of experience, and trust in centralized structures.