#CEXvsDEX101

**CEX vs DEX 101:**

A **Centralized Exchange (CEX)**, like Binance or Coinbase, is operated by a company that controls users' funds and trades. It offers ease of use, high liquidity, fast transactions, and customer support. However, users must trust the platform with their assets and personal data, making them vulnerable to hacks or mismanagement.

A **Decentralized Exchange (DEX)**, such as Uniswap or SushiSwap, operates on blockchain protocols without intermediaries. Users retain control of their funds via smart contracts and trade directly from their wallets. DEXs offer privacy (no KYC), reduced counterparty risk, and promote financial sovereignty. However, they typically have lower liquidity, slower transaction speeds, and a steeper learning curve.

In short:

- **CEX**: User-friendly, trusted, but centralized risk.

- **DEX**: Secure, private, but less convenient.

Both play critical roles in crypto ecosystems, catering to different user preferences. As blockchain evolves, hybrid models are emerging to combine the best of both worlds.