#CEXvsDEX101 CEX (Centralized Exchanges) and DEX (Decentralized Exchanges) are two types of cryptocurrency trading platforms.
**CEX:**
- Operated by centralized entities.
- Users deposit funds directly to the exchange.
- Offers user-friendly interfaces and customer support.
- Generally higher liquidity and faster transactions.
- May require KYC (Know Your Customer) verification.
**DEX:**
- Operated on blockchain technology with no central authority.
- Users retain control of their funds (non-custodial).
- Provides more privacy and anonymity.
- Typically lower liquidity and slower transactions.
- No KYC, but can have higher risk of smart contract vulnerabilities.
Both have their advantages and disadvantages, and the choice between them often depends on user needs and preferences.