#CEXvsDEX101🔥 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchanges that differ in their architecture, functionality, and user experience.

*CEX (Centralized Exchange)*

- *Centralized authority*: A single entity controls the exchange, managing user accounts, transactions, and security.

- *Order book management*: The exchange maintains an order book, matching buy and sell orders.

- *Custodial*: Users' funds are held in custody by the exchange.

- *Examples*: Binance, Coinbase, Kraken.

*DEX (Decentralized Exchange)*

- *Decentralized network*: Transactions occur directly between users on a blockchain, without a central authority.

- *Automated market maker (AMM)*: Liquidity pools and algorithms determine prices and facilitate trades.

- *Non-custodial*: Users retain control of their funds, trading directly from their wallets.

- *Examples*: Uniswap, SushiSwap, PancakeSwap.

*Key differences:*

- *Security*: CEXs are more vulnerable to hacking and theft, while DEXs are more secure due to their decentralized nature.

- *Control*: CEXs hold users' funds, while DEXs give users full control over their assets.

- *Liquidity*: CEXs often have higher liquidity, while DEXs can be more