#CEXvsDEX101

CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two different types of cryptocurrency trading platforms. The main difference lies in the management of assets and the structure of operation. A CEX, such as Binance or Coinbase, is a centralized platform that controls users' funds, while a DEX, such as Uniswap or PancakeSwap, uses smart contracts to conduct trades without intermediaries, providing more control and privacy to users.

CEX (Centralized Exchange)

Function:

A centralized exchange acts as an intermediary between buyers and sellers, controlling the funds and liquidity of trades.

Advantages:

Ease of use, high liquidity, a wide variety of cryptocurrencies, and customer support.

Disadvantages:

Requires users to deposit and maintain their funds on the platform, subject to risks of hacking or exchange bankruptcy.

Examples:

Binance, Coinbase, Kraken, CEX.IO.

DEX (Decentralized Exchange)

Function: DEXs use smart contracts to facilitate cryptocurrency trading, allowing users to trade directly with liquidity pools, without intermediaries.

Advantages: Self-custody of assets, privacy, and greater control over funds.

Disadvantages: Lower liquidity, greater complexity of use, and less customer support.

Examples: Uniswap, PancakeSwap, STON.fi, 0x.