#CEXvsDEX101 In the world of cryptocurrencies, the choice between a CEX (Centralized Exchange) and a DEX (Decentralized Exchange) is crucial and depends on the user's priorities.

CEX (Centralized Exchange)

A CEX is a platform operated by a company, acting as an intermediary. It offers ease of use, high liquidity, and often allows trading with fiat money. However, it requires identity verification (KYC) and users do not have full control of their funds, as the CEX holds them. Examples include Binance and Coinbase.

DEX (Decentralized Exchange)

A DEX allows direct transactions between users through smart contracts on the blockchain, without a central intermediary. This provides greater privacy, self-custody of funds, and resistance to censorship. The disadvantages often include lower liquidity, more complex interfaces, and sometimes slower transaction speeds. Uniswap and PancakeSwap are examples of DEX.

In summary, CEXs prioritize convenience and liquidity with an intermediary, while DEXs emphasize autonomy and privacy through decentralization.