#CEXvsDEX101

CEX vs. DEX: Understanding the DifferenceCentralized Exchanges (CEX) and Decentralized Exchanges (DEX) are platforms for trading cryptocurrencies, but they operate differently. CEXs, like Binance or Coinbase, are managed by a central authority, offering user-friendly interfaces, high liquidity, and fast transactions. However, they require users to trust the platform with their funds, making them vulnerable to hacks or mismanagement. DEXs, like Uniswap or SushiSwap, operate on blockchain without intermediaries, giving users control over their assets via smart contracts. While DEXs prioritize security and privacy, they often face lower liquidity and slower transaction speeds. Choosing between CEX and DEX depends on your priorities: convenience and speed (CEX) or security and decentralization (DEX).