#CEXvsDEX101 In cryptocurrencies, CEX (Centralized Exchange) and DEX (Decentralized Exchange) are trading platforms, but with fundamental differences: CEX are centralized exchanges that control your funds, while DEX are decentralized platforms that allow users to maintain control over their funds.

CEX (Centralized Exchange):

Centralized Structure:

CEX are platforms controlled by a central entity, such as a company, that acts as an intermediary between buyers and sellers.

Custody of Funds:

CEX typically hold custody of users' funds, meaning that users do not have direct control over their funds when they are on the platform.

Regulation:

CEX are generally regulated by financial agencies, which can increase user security but may also limit access to certain jurisdictions.

Examples:

Binance, Coinbase, Kraken.

DEX (Decentralized Exchange):

Decentralized Structure:

DEX are platforms that use blockchain technology and smart contracts to allow users to trade directly with each other, without the need for a central entity.

Custody of Funds:

DEX allow users to maintain control over their funds, storing them directly in their cryptocurrency wallets.

Privacy:

DEX generally offer more privacy than CEX, as they do not require personal information to open an account.

Examples:

Uniswap, Sushiswap.