#CEXvsDEX101 ...
CEX vs. DEX: A 101 GuideCentralized Exchanges (CEXs) like Binance and Coinbase are user-friendly platforms where a company controls trading, holding users’ funds in custodial wallets.
They offer high liquidity, fast transactions, and fiat on-ramps but require KYC and pose risks of hacks or mismanagement. Decentralized Exchanges (DEXs) like Uniswap operate on blockchains, enabling peer-to-peer trading without intermediaries. Users retain control of their funds via non-custodial wallets, enhancing security and privacy.
However, DEXs may have lower liquidity, higher fees, and complex interfaces.
CEXs suit beginners seeking convenience; DEXs appeal to those prioritizing autonomy and decentralization in crypto trading.$DYDX