#CEXvsDEX101

#CEXvsDEX101 Here's a comparison between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX):

*Centralized Exchanges (CEX)*

- *Definition*: CEX are traditional exchanges that are controlled by a central authority, which manages transactions, user accounts, and security.

- *Examples*: Binance, Coinbase, Kraken

- *Pros*:

- User-friendly interface

- High liquidity

- Advanced trading features

- *Cons*:

- Centralized control can lead to security risks

- Users may be required to undergo Know Your Customer (KYC) procedures

- Potential for censorship and regulatory oversight

*Decentralized Exchanges (DEX)*

- *Definition*: DEX are exchanges that operate on blockchain technology, allowing for peer-to-peer transactions without a central authority.

- *Examples*: Uniswap, SushiSwap, PancakeSwap

- *Pros*:

- Decentralized and trustless transactions

- Increased security and transparency

- No KYC requirements

- *Cons*:

- Can be complex to use for beginners

- Lower liquidity compared to CEX

- Potential for smart contract risks

*Key differences*

- *Control*: CEX are controlled by a central authority, while DEX operate on decentralized blockchain technology.

- *Security*: CEX are more vulnerable to security risks due to centralized control, while DEX are more secure due to their decentralized nature.

- *Regulation*: CEX are subject to regulatory oversight and may require KYC procedures, while DEX operate in a