#CEXvsDEX101 #CEXvsDEX101 compares centralized exchanges (CEXs) and decentralized exchanges (DEXs), two primary types of cryptocurrency trading platforms.

*Centralized Exchanges (CEXs):*

- *User-Friendly Interface*: Easy to navigate and execute trades

- *High Liquidity*: Large trading volumes and market makers provide liquidity

- *Advanced Features*: Margin trading, stop-loss orders, and more

*Decentralized Exchanges (DEXs):*

- *Decentralized Nature*: Operates on blockchain technology, allowing peer-to-peer transactions without intermediaries

- *Security*: Users control their funds, reducing risk of hacks and theft

- *Transparency*: Open-source code and transparent transaction history

*Key Differences:*

- *Custody*: CEXs hold users' funds, while DEXs allow users to control their assets

- *Regulation*: CEXs are more susceptible to regulatory oversight, while DEXs operate more autonomously

Understanding these differences helps users choose the best platform for their trading needs and risk tolerance [1].