#CEXvsDEX101 CEX vs. DEX: Centralization vs. Decentralization in Crypto

Cryptocurrency exchanges are divided into CEX (centralized) and DEX (decentralized). CEXs, like Binance or Coinbase, operate like traditional intermediaries, holding users' funds and offering simple interfaces, high liquidity, and customer support. However, they require KYC (know your customer) and are vulnerable to centralized attacks.

On the other hand, DEXs, like Uniswap, allow direct trading between users through smart contracts on the blockchain. They offer greater privacy, resistance to censorship, and complete control over funds. Their disadvantages include lower liquidity, more complex interfaces, and the need for greater technical knowledge. The choice between CEX and DEX depends on the user's priorities: security, privacy, or ease of use.