Centralized exchanges (CEXs) offer high liquidity, user-friendly interfaces, and customer support, but present security and regulatory risks.

Decentralized exchanges (DEXs) prioritize user privacy and control, allowing trades directly from personal wallets without intermediaries.

CEXs are more accessible for beginners, while DEXs require more technical knowledge but offer greater autonomy.

Both CEXs and DEXs have distinct advantages and disadvantages, depending on the user's needs and preferences.

Hybrid exchanges are emerging, combining the benefits of CEXs and DEXs.