#CEXvsDEX101

CEX (Centralized Exchange) and DEX (Decentralized Exchange) are platforms for trading cryptocurrencies, but they operate differently.

CEXs like Binance or Coinbase are run by centralized companies. They offer high liquidity, fast transactions, user-friendly interfaces, and support for fiat currencies. However, users don’t control their private keys, making them vulnerable to hacks and restrictions. CEXs also follow regulations, which can limit access based on location or identity verification.

DEXs like Uniswap or PancakeSwap operate without intermediaries, using smart contracts on blockchains. They allow users to trade directly from their wallets, maintaining full control of their funds. DEXs offer greater privacy and resistance to censorship but often have lower liquidity, slower transaction speeds, and limited support for fiat.

In short, CEXs are convenient and fast but centralized, while DEXs prioritize decentralization and self-custody, often at the cost of ease of use and performance. Choosing depends on your priorities: control vs. convenience.