#CEXvsDEX101

Centralized exchanges (CEXs) still lead in trading volume and offer beginner-friendly interfaces with fiat support, but they require full KYC and involve custodial risk. Decentralized exchanges (DEXs) give users full control of their assets and allow anonymous trading, though they come with smart contract risks. In 2025, DEXs are gaining traction through innovations like cross-chain swaps and Layer 2 integration, improving speed and reducing gas fees. Meanwhile, CEXs are adapting by integrating Web3 features to stay competitive. Hybrid models are also emerging, combining the strengths of both platforms as the line between CEX and DEX continues to blur.