#CEXvsDEX101 Grasping the Difference

Centralized and decentralized exchanges function in distinct ways:

Centralized Exchanges (CEXs) like Binance and Coinbase:

Operate as intermediaries, managing users’ funds and executing trades on their behalf

Offer speed and ease of use

Require users to place trust in the platform’s security and integrity

Decentralized Exchanges (DEXs) like Uniswap and PancakeSwap:

Facilitate direct, peer-to-peer transactions using smart contracts, without a central governing entity

Let users maintain full control over their assets, offering greater privacy and security

May face issues such as lower liquidity and slower transaction times

Choosing between a CEX and a DEX depends on what matters most to you—convenience, autonomy, or privacy. Knowing how both work empowers you to trade more wisely.

Before You Invest:

Always research thoroughly

Only invest what you can afford to lose