#CEXvsDEX101

Centralized exchanges (CEXs) and decentralized exchanges (DEXs) each possess distinct advantages and disadvantages. CEXs, such as Binance or Coinbase, are operated by companies, provide high liquidity, and are designed to be user-friendly. They are particularly suitable for beginners; however, they necessitate KYC compliance and do not grant you control over your private keys.

In contrast, DEXs like Uniswap or PancakeSwap are decentralized platforms that enable users to engage in peer-to-peer trading through smart contracts. While you maintain complete control over your cryptocurrency, you may encounter challenges such as elevated gas fees or reduced liquidity. Additionally, DEXs tend to offer enhanced privacy. Understanding when to utilize a CEX as opposed to a DEX is crucial for effective and secure trading