#CEXvsDEX101 : Navigating Crypto Exchanges

In the crypto world, understanding the difference between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) is crucial. CEXs, like Binance and Coinbase, are platforms operated by centralized entities. They offer user-friendly interfaces, high liquidity, and customer support, making them ideal for beginners. However, they require users to trust the platform with their funds and often mandate Know Your Customer (KYC) procedures .

On the other hand, DEXs, such as Uniswap and SushiSwap, operate without a central authority. Users maintain control over their private keys, enhancing security and privacy. Transactions occur directly between users through smart contracts, reducing the risk of hacks . However, DEXs may have lower liquidity and higher transaction fees, especially during network congestion .

Choosing between a CEX and a DEX depends on your priorities—whether it's ease of use and support (CEX) or control and privacy (DEX).