Centralized Exchange (CEX) is operated by a central authority, where users need to entrust their assets to the platform. It offers fast transaction speeds and strong liquidity, such as Binance and Huobi. However, it poses risks such as asset theft and manipulated trading.

Decentralized Exchange (DEX) is based on blockchain technology, allowing users to control their private keys and assets, with transactions completed on-chain, such as Uniswap and PancakeSwap. Although it is safer and more transparent, it has slower transaction speeds and limited liquidity.

Both have their advantages and disadvantages; centralized exchanges are suitable for beginners and high-frequency trading, while decentralized exchanges are more suitable for users who prioritize privacy and asset control. In the future, there may be a trend towards integration, forming a hybrid trading model.