#CEXvsDEX101

In short, CEX (centralized exchanges) like Binance are companies that manage cryptocurrency trading. You deposit your money with them, and they control it. They are user-friendly, liquid, and provide customer support, but they require identity verification (KYC) and your funds are under the control of a third party.

On the other hand, DEX (decentralized exchanges) like Uniswap operate directly on the blockchain via smart contracts. You retain full control over your funds and private keys, and they do not require identity verification, providing greater privacy. However, they may be less user-friendly for beginners, and may suffer from lower liquidity and variable gas fees. The choice depends on your priorities between security, control, and ease of use.