#CEXvsDEX101 Understanding the Key Differences Between CEX and DEX

When it comes to trading cryptocurrencies, the choice between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) is crucial. CEXs, like Binance or Coinbase, offer high liquidity, fast transactions, and user-friendly interfaces but require KYC and custody of your funds. On the other hand, DEXs, such as Uniswap or PancakeSwap, provide full control of your assets through self-custody wallets, eliminating middlemen. However, DEXs may have lower liquidity and a steeper learning curve for beginners.

Security is another key factor—CEXs are prone to hacks, while DEXs rely on smart contracts, which can also have vulnerabilities. Which do you prefer and why?