#CEXvsDEX101 Binance, a centralized exchange (CEX), operates like a traditional bank, managing user funds and providing services like fiat-crypto trading, customer support, and a user-friendly interface. In contrast, decentralized exchanges (DEXs) like Uniswap operate on smart contracts, offering direct trading from user wallets, greater privacy, and self-custody of funds. DEXs prioritize decentralization and security, but may lack the speed and liquidity of CEXs.

In 150 words:

CEXs (like Binance):

Centralized: Managed by a company, they hold your assets.

Convenient: User-friendly interface, fast transactions, high liquidity, and fiat deposits.

Support: Customer support and assistance if needed.

KYC Required: Typically require identity verification.

DEXs (like Uniswap):

Decentralized: Operate on the blockchain, no central authority.

Self-custody: You control your assets from your own wallet.

Privacy: Often no KYC, more anonymous trading.

Security: Resistant to centralized hacks, but smart contract vulnerabilities exist.

Less Liquidity: May have lower trading volumes and price slippage.

Higher Fees: May incur higher gas fees.

Choosing between a CEX or DEX depends on your priorities and risk tolerance. CEXs are ideal for beginners seeking ease of use, while DEXs offer greater control and privacy for advanced users