Centralized exchanges (CEX) like Binance and Coinbase are known for their ease of use and high liquidity, making them suitable for beginners and high-frequency traders. However, they require users to trust the platform to hold their assets, which carries risks of hacking and regulatory intervention.

Decentralized exchanges (DEX) like Uniswap and dYdX enable peer-to-peer trading through smart contracts, allowing users to have complete control over their private keys and assets, which aligns more with the spirit of cryptocurrency. The downside is that the operational threshold is higher, and some trading pairs have lower liquidity.