#CEXvsDEX101
Centralized exchanges (CEX) are platforms managed by companies that facilitate buying and selling of cryptocurrencies, offering user-friendly interfaces, fast transactions, and customer support. They hold users’ funds in custody, which means users must trust the exchange’s security. Decentralized exchanges (DEX), on the other hand, operate without a central authority, allowing peer-to-peer trading directly from users’ wallets. DEXs provide greater privacy and control over funds but may have slower transactions and less liquidity. While centralized exchanges are easier for beginners, decentralized exchanges promote transparency and reduce the risk of hacking or censorship by eliminating intermediaries.
