#CEXvsDEX101 Centralized exchanges (CEXs) and decentralized exchanges (DEXs) differ in functionality and user control:

CEXs: Operated by centralized entities, CEXs act as intermediaries. They offer user-friendly interfaces, high liquidity, and advanced trading features like margin trading. However, users must trust the platform with their funds and data, making them vulnerable to hacks or mismanagement.

DEXs: Operate on blockchain protocols without intermediaries, enabling peer-to-peer trading. They prioritize privacy and self-custody of assets, reducing security risks. However, DEXs often face lower liquidity, slower transactions, and a steeper learning curve for users.

CEXs suit beginners and active traders, while DEXs appeal to decentralization advocates.