DEX vs CEX 101
When diving into the world of cryptocurrency trading, two primary platforms emerge: Decentralized Exchanges (DEXs) and Centralized Exchanges (CEXs). A CEX like Binance or Coinbase acts as an intermediary, holding users' funds and facilitating trades through their own systems. They offer speed, high liquidity, and user-friendly interfaces, but require users to trust the platform with their assets and personal data.
On the other hand, a DEX such as Uniswap or PancakeSwap operates without intermediaries, allowing users to trade directly from their wallets using smart contracts. While DEXs offer greater privacy and control, they often come with lower liquidity, fewer trading features, and a steeper learning curve.
In essence, DEXs prioritize decentralization and self-custody, while CEXs offer convenience and accessibility. Choosing between them depends on your priorities—security and control vs. ease of use and speed.
