#CEXvsDEX101

The comparison between *CEX (Centralized Exchanges)* and *DEX (Decentralized Exchanges)* and how their dynamics can influence the market.

*CEX* usually offers greater liquidity, execution speed, and advanced tools, making them attractive to institutional and retail traders seeking stability. However, they rely on intermediaries and may be subject to strict regulations.

On the other hand, *DEX* allows trading without intermediaries, offering greater privacy and control over assets. Their growth has been driven by the adoption of smart contracts and financial decentralization. Nonetheless, they may face challenges such as lower liquidity and slower execution times.

The current trend shows an increase in the adoption of *DEX*, especially in emerging markets and during times of regulatory uncertainty.

However, *CEX* continues to dominate in trading volume. The choice between the two depends on the trader's strategy and risk tolerance.