#CEXvsDEX101

dear readers, a CEX (Centralized Exchange) is a platform like Binance or Coinbase where a central authority manages trading, custody, and user funds.

It offers high liquidity, user-friendly interfaces, and fast transactions but requires trust in the platform, as it controls private keys and can be vulnerable to hacks or regulatory issues.

A DEX (Decentralized Exchange), like Uniswap or PancakeSwap, operates without a central authority, using smart contracts on blockchains for peer-to-peer trading. Users retain control of their funds via private keys, enhancing security and privacy.

However, DEXs may have lower liquidity, higher fees (e.g., gas costs), and complex interfaces. CEXs are better for beginners and large trades, while DEXs appeal to those prioritizing decentralization and control.

Both play key roles in crypto, balancing trade-offs between convenience, security, and autonomy.