#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) differ in their architecture and operation. CEX, like Binance or Coinbase, is controlled by a central authority, holding users' funds and facilitating trades. DEX, like Uniswap or SushiSwap, operates on a blockchain, allowing peer-to- peer transactions without intermediaries. Key differences include: *custody* (CEX holds funds, DEX does not), *security* (CEX is more vulnerable to hacking, DEX is more resistant), *regulation* (CEX is more regulated, DEX is more decentralized), and *privacy* (DEX often provides more anonymity). Each has its advantages and