#CEXvsDEX101

Centralized Exchanges (CEXs) like Binance or Coinbase are operated by companies that manage users’ funds and transactions. They offer high liquidity, fast trades, and user-friendly interfaces but require users to trust a third party with custody of their assets. In contrast, Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap allow users to trade directly from their wallets using smart contracts. DEXs offer greater privacy, security, and control, but may face issues like lower liquidity and slower transactions. CEXs are beginner-friendly; DEXs appeal to those valuing autonomy. Choosing between them depends on your priorities: convenience vs. control.