#CEXvsDEX101

*CEX vs DEX: Understanding the Difference*

In the world of cryptocurrency trading, exchanges play a crucial role. There are two primary types: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX).

*CEX:*

- *Centralized platform*: Operated by a central authority, managing transactions and user accounts.

- *Higher liquidity*: Typically offers more trading pairs and higher trading volumes.

- *User-friendly interface*: Often provides easier onboarding and more features.

*DEX:*

- *Decentralized platform*: Operates on a blockchain, allowing peer-to-peer transactions without intermediaries.

- *Greater security*: Users retain control of their assets, reducing the risk of hacks and theft.

- *Increased privacy*: Often provides more anonymity and less stringent KYC requirements.

When choosing between CEX and DEX, consider your priorities: liquidity, security, and ease of use [1].