#CEXvsDEX101

In the world of cryptocurrencies, there are two main types of exchange platforms:

CEX (Centralized Exchange): These are platforms like Binance or Coinbase. They operate like banks: they control your funds and require identity verification (KYC). They offer ease of use, high liquidity, customer support, and more trading pairs, but they carry custody risk and are subject to regulations.

DEX (Decentralized Exchange): These are platforms like Uniswap or PancakeSwap. They allow direct exchange between users through smart contracts, without an intermediary. They offer privacy, complete control over your funds (no KYC), and resistance to censorship. However, they can be more complex, have lower liquidity, and do not always allow trading with fiat money.

The choice depends on your priorities: convenience and regulation (CEX) or autonomy and privacy (DEX).