#CEXvsDEX101

Centralized Exchanges (CEXs) like Binance or Coinbase are managed by a central authority, offering user-friendly interfaces, high liquidity, and customer support. However, users must trust the platform with their funds and data. In contrast, Decentralized Exchanges (DEXs) such as Uniswap or PancakeSwap operate without intermediaries, allowing peer-to-peer trading via smart contracts. DEXs offer greater privacy and control, as users retain custody of their assets. While DEXs promote decentralization and security, they often face lower liquidity and slower transactions. Both models have pros and cons; choice depends on user priorities like convenience, control, and trust.