🚨Centralized vs Decentralized Exchanges: Key Differences
Crypto exchanges come in two main forms: Centralized (CEX) and Decentralized (DEX). Each serves the same purpose—trading digital assets—but works very differently.
Centralized Exchanges (CEXs) like Binance and Coinbase are run by companies. They offer high liquidity, fast transactions, fiat support, and easy-to-use interfaces. However, users must give up custody of their funds and complete KYC verification. These platforms are ideal for beginners and high-volume traders.
Decentralized Exchanges (DEXs) like Uniswap and PancakeSwap run on smart contracts. They allow users to trade directly from their wallets, without intermediaries or KYC. DEXs offer more privacy and control but may suffer from lower liquidity, higher fees, and complex interfaces.
In summary:
Use CEXs for speed, simplicity, and fiat on-ramps.
Use DEXs for privacy, security, and full control over your crypto.
