#TrendingTypes101
CEX vs DEX
CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two main types of crypto trading platforms. CEXs like Binance or Coinbase act as intermediaries, where users trust the platform to manage their funds and execute trades. They offer high liquidity, fast transactions, and user-friendly interfaces but require KYC and are vulnerable to hacks or regulatory shutdowns.
On the other hand, DEXs like Uniswap or PancakeSwap allow peer-to-peer trading directly via smart contracts. Users retain control of their private keys and funds, enhancing security and privacy. However, DEXs may have lower liquidity, slower speeds, and are sometimes less intuitive for beginners.
In summary, CEXs are centralized, user-friendly, and efficient but come with trust and security risks. DEXs offer decentralization and privacy but may lack convenience and speed. The choice depends on a user’s priorities: control and privacy vs. ease and performance.
