#CEXvsDEX101

In the world of cryptocurrencies, one of the most important decisions any user must make is where to trade: in a centralized exchange (CEX) or in a decentralized exchange (DEX)? This article breaks down the key differences, advantages, and disadvantages of each option to help you choose the best platform according to your needs.

1. What is a CEX (Centralized Exchange)?

Centralized exchanges are traditional platforms where a company acts as an intermediary in all transactions.

**Popular examples:**

- Binance

- Coinbase

- Kraken

2. What is a DEX (Decentralized Exchange)?

DEXs operate on smart contracts on the blockchain, eliminating intermediaries.

**Notable examples:**

- Uniswap (Ethereum)

- PancakeSwap (BNB Chain)

- dYdX (Derivatives)

While CEXs offer convenience and easy access, DEXs represent the true essence of crypto decentralization. Ideally, it is important to understand both and use them strategically according to each situation.