#CEXvsDEX101 You're diving into the world of cryptocurrency exchanges!
*CEX (Centralized Exchange)*:
- Operated by a central authority
- Users deposit funds into the exchange's custody
- Often provides better liquidity and user experience
- Examples: Binance, Coinbase
*DEX (Decentralized Exchange)*:
- Operates on a blockchain, allowing peer-to-peer transactions
- Users retain control of their funds
- Offers greater security and decentralization
- Examples: Uniswap, PancakeSwap
Key differences:
- *Custody*: CEX holds user funds, while DEX users manage their own.
- *Security*: DEX is generally considered more secure due to decentralization.
- *Liquidity*: CEX often has better liquidity due to larger user bases.
Which one do you prefer? Or do you have specific questions about CEX vs DEX?