#CEXvsDEX101 CEX (Centralized Exchange)Definition: Platforms like Binance, Coinbase, or Kraken, operated by a central authority or company.How It Works: Acts as a middleman, holding user funds in custodial wallets. Users trade through the platform's order book.Pros:High liquidity, faster transactions.User-friendly interfaces, ideal for beginners.Advanced features (margin trading, fiat on-ramps).Customer support available.Cons:Custodial: You don’t fully control your funds ("not your keys, not your crypto").Vulnerable to hacks, outages, or regulatory shutdowns.Often requires KYC (identity verification).Examples: Binance, Coinbase, KuCoin.DEX (Decentralized Exchange)Definition: Platforms like Uniswap, SushiSwap, or PancakeSwap, running on blockchain protocols with no central authority.How It Works: Peer-to-peer trading via smart contracts, often using Automated Market Makers (AMMs). Users retain control of funds via non-custodial wallets.Pros:Non-custodial: You control your private keys.Censorship-resistant, no KYC in many cases.Access to a wide range of tokens, including new or niche ones.Cons:Lower liquidity, potentially higher slippage.Complex for beginners (requires wallet setup, gas fees).Limited customer support; relies on community or self-troubleshooting.Examples: Uniswap, Curve, Balancer.