#CEXvsDEX101 Centralized exchanges (CEXs) like Binance and Coinbase are managed by companies that control users' funds and offer fast, user-friendly trading with high liquidity. However, they require identity verification and pose custodial risks. In contrast, decentralized exchanges (DEXs) like Uniswap and PancakeSwap operate without intermediaries, allowing users to trade directly from their wallets, enhancing privacy and control. DEXs are less prone to hacks of a central entity but may suffer from lower liquidity, slower execution, and complex interfaces. In summary, CEXs prioritize convenience and speed, while DEXs offer autonomy and privacy, appealing more to users valuing decentralization and self-custody.
