#CEXvsDEX101

CEXvsDEX101

Central exchanges (CEX) and decentralized exchanges (DEX) are two types of cryptocurrency trading platforms. Central exchanges, such as Binance and Coinbase, are operated by a central authority, providing high liquidity and user-friendly interfaces. However, they require users to trust the platform to manage their funds. In contrast, decentralized exchanges like Uniswap and PancakeSwap operate without intermediaries, allowing peer-to-peer trading through smart contracts. These exchanges offer more privacy and control over assets, but may have lower liquidity and slower transaction speeds. The choice between central and decentralized exchanges depends on each platform's needs for security, convenience, and control. Each has its own advantages and risks.