#CEXvsDEX101 CEX vs DEX: A Quick Rundown

Centralized Exchanges (CEXs) like Binance or Coinbase act as intermediaries, holding your crypto and facilitating trades. They offer user-friendly interfaces, high liquidity, and customer support, but require KYC (Know Your Customer) and expose you to counterparty risk as you don't control your private keys.

Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap allow peer-to-peer trading directly from your wallet via smart contracts. They embody crypto's core ethos: self-custody, privacy (no KYC), and censorship resistance. However, DEXs can have a steeper learning curve, lower liquidity for some assets, and users are responsible for managing their own security. The choice often depends on individual priorities: convenience vs. control.