#CEXvsDEX101

Centralized Exchanges (CEX) vs. Decentralized Exchanges (DEX):

CEXs like Binance or Coinbase are operated by centralized organizations that act as intermediaries, offering high liquidity, user-friendly interfaces, and fast transactions. They often support fiat deposits and offer customer support, making them ideal for beginners. However, users must trust the exchange with their funds and personal data, which increases the risk of hacks or misuse.

DEXs like Uniswap or PancakeSwap run on blockchain protocols and allow peer-to-peer trading without intermediaries. Users maintain full control of their assets through self-custody wallets, enhancing privacy and security. However, DEXs often have lower liquidity, higher slippage, and a steeper learning curve. They typically don’t support fiat or centralized customer service.

In summary, CEXs offer convenience and liquidity but require trust, while DEXs prioritize decentralization and control but demand technical understanding and caution. Traders often use both depending on needs like privacy, speed, or ease of use.