#CEXvsDEX101 #CEXvsDEX101

Centralized Exchanges (CEXs) like Binance and Coinbase act as intermediaries, offering high liquidity, fast transactions, and customer support. However, they control user funds and are vulnerable to hacks or regulatory shutdowns. In contrast, Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap allow peer-to-peer trading via smart contracts. Users retain custody of their assets, ensuring more privacy and control, but face higher fees, slower transactions, and less intuitive interfaces. CEXs are user-friendly and regulated; DEXs are permissionless and transparent. Choosing between the two depends on priorities—convenience and speed (CEX) versus control and decentralization (DEX). Understand both to navigate crypto smartly.