#CEXvsDEX101 CEX vs DEX: Centralized Exchanges (CEX) vs Decentralized Exchanges (DEX).
*Centralized Exchanges (CEX):*
1. *Control*: Central authority manages transactions and user funds.
2. *Liquidity*: High liquidity due to large user base.
3. *User Experience*: User-friendly interfaces.
4. *Security*: Potential security risks due to centralized control.
*Decentralized Exchanges (DEX):*
1. *Decentralized Control*: No central authority; transactions occur directly between users.
2. *Security*: Enhanced security due to decentralized nature.
3. *Privacy*: Greater user privacy.
4. *Liquidity*: Potential liquidity issues.
*Key Differences:*
1. *Trust*: CEX requires trust in the central authority, while DEX operates trustlessly.
2. *Regulation*: CEX often subject to stricter regulations.
3. *Fees*: DEX can have higher fees due to blockchain transaction costs.
*Examples:*
1. CEX: Binance, Coinbase
2. DEX: Uniswap, SushiSwap