#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) differ in structure and operation. CEXs, like Binance or Coinbase, are managed by a central authority, offering high liquidity, fast transactions, and user-friendly interfaces. They hold user funds, requiring trust, and often comply with regulations, but are vulnerable to hacks and censorship. DEXs, like Uniswap or PancakeSwap, operate on blockchain, enabling peer-to-peer trading without intermediaries. They prioritize user control, privacy, and security, as users retain custody of funds. However, DEXs may face lower liquidity, slower transactions, and complex interfaces. CEXs suit beginners; DEXs appeal to those valuing decentralization and autonomy.