#CEXvsDEX101

### **CEX vs. DEX 101**

**Centralized Exchanges (CEX)** – Operated by companies (e.g., Binance, Coinbase), offering high liquidity, fast trades, and user-friendly interfaces. Users trust a third party to hold funds (custodial), requiring KYC. Risks include hacking and regulation.

**Decentralized Exchanges (DEX)** – Peer-to-peer platforms (e.g., Uniswap, dYdX) running on smart contracts. Non-custodial (users control keys), no KYC, and censorship-resistant. However, liquidity can be lower, and transactions slower due to blockchain confirmations.

**Key Difference:** CEX = convenience & speed; DEX = privacy & self-custody. Choose based on trust, security, and trade needs!