#CEXvsDEX101

🤔 Have you ever wondered about the difference between centralized exchanges (CEX) and decentralized exchanges (DEX)? Understanding this difference is very important for anyone entering the world of cryptocurrencies.

📊 Centralized exchanges (CEX) like Binance and Coinbase are managed by companies. They provide high liquidity and good execution speed, but they hold your private keys, which makes them vulnerable to hacks if there are security vulnerabilities in the system.

🔐 On the other hand, decentralized exchanges (DEX) like Uniswap and PancakeSwap operate through smart contracts without an intermediary. The user retains their private keys, giving them greater control, but liquidity may be lower, and network fees can be higher at times.

Each type has its advantages and disadvantages, and choosing the best one depends on your needs: do you prefer security and complete control? Or speed and ease of use?

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