#CEXvsDEX101
Refers to a comparison between centralized exchanges (CEX) and decentralized exchanges (DEX) in the world of cryptocurrencies. Here are the main differences:
*Centralized Exchanges (CEX)*
- Are cryptocurrency exchange platforms that are controlled by a centralized entity.
- Offer a user-friendly interface and high liquidity.
- Examples: Binance, Coinbase, Kraken.
*Decentralized Exchanges (DEX)*
- Are cryptocurrency exchange platforms that operate without a centralized entity.
- Use smart contracts and blockchain to facilitate transactions.
- Offer greater security and privacy.
- Examples: Uniswap, SushiSwap, PancakeSwap.
*Key Differences*
- *Centralization vs Decentralization*: CEX are controlled by a centralized entity, while DEX operate in a decentralized manner.
- *Security*: DEX are considered more secure due to the lack of a single point of failure.
- *Liquidity*: CEX usually have higher liquidity due to the large number of users and assets.
- *Interface*: CEX often have more user-friendly and easy-to-use interfaces.