#CEXvsDEX101 Differences between centralized cryptocurrency exchanges (CEX) and decentralized exchanges (DEX). CEXs, like Binance and Coinbase, offer ease of use, high liquidity, and advanced features but require users to trust the platform with the custody of their funds and usually demand KYC. This brings convenience and support but also centralized security risks and lower privacy.

On the other hand, DEXs like Uniswap and PancakeSwap provide self-custody and greater privacy, allowing direct trading via smart contracts. The advantages include complete control over private keys and lower risk of centralized attacks. However, DEXs can be more complex for beginners, have lower liquidity, and require users to bear network fees.

The choice between CEX and DEX depends on individual priorities: convenience and features versus security, privacy, and full control of assets.