#CEXvsDEX101 1: Understanding Centralized vs Decentralized Exchanges

When diving into crypto trading, one of the first decisions you’ll face is choosing between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX). Both have unique features, benefits, and trade-offs. Here’s a quick guide to help you understand the key differences and make informed choices for your trading journey!

What is a CEX? (Centralized Exchange)

A CEX is a platform run by a centralized entity (e.g., Binance, Coinbase, Kraken) that facilitates crypto trading. It acts as a middleman between buyers and sellers.

What is a DEX? (Decentralized Exchange)

A DEX operates without a central authority, using blockchain technology and smart contracts to enable peer-to-peer trading (e.g., Uniswap, PancakeSwap, SushiSwap).