#CEXvsDEX101 of cryptocurrency exchanges that differ in their architecture, security, and user experience.

*CEX (Centralized Exchange):*

- *Definition*: A centralized platform that facilitates buying, selling, and trading of cryptocurrencies.

- *Characteristics*:

- *Order Book*: A centralized order book that matches buy and sell orders.

- *Custodial*: Users' funds are held in custody by the exchange.

- *Regulated*: Often subject to regulatory requirements and know-your-customer (KYC) procedures.

- *User Interface*: Typically user-friendly and easy to navigate.

- *Examples*: Binance, Coinbase, Kraken.

*DEX (Decentralized Exchange):*

- *Definition*: A decentralized platform that enables peer-to-peer transactions without intermediaries.

- *Characteristics*:

- *Decentralized Order Book*: Orders are matched through smart contracts or decentralized protocols.

- *Non-Custodial*: Users retain control of their funds.

- *Less Regulated*: Often less subject to regulatory requirements.

- *User Interface*: Can be more complex and less user-friendly.

- *Examples*: Uniswap, SushiSwap, PancakeSwap.

*Key Differences:*

- *Security*: CEXs are more vulnerable to hacking and security risks due to centralized storage of user funds. DEXs are generally more secure since users retain control of their assets.

- *Regulation*: CEXs are often subject to stricter regulatory requirements, while DEXs operate with more autonomy.

- *User Experience*: CEXs typically offer a more user-friendly interface, while DEXs can be more complex.