#CEXvsDEX101 *CEX (Centralized Exchange)*:
- Operates on a centralized platform, similar to traditional stock exchanges.
- Users' funds are held by the exchange.
- Typically offers high liquidity and user-friendly interfaces.
- Examples include Binance and Coinbase.
*DEX (Decentralized Exchange)*:
- Operates on a blockchain, allowing peer-to-peer transactions without intermediaries.
- Users retain control of their funds.
- Offers greater security and transparency but may have lower liquidity.
- Examples include Uniswap and SushiSwap.
The choice between CEX and DEX depends on priorities: convenience and liquidity (CEX) or security and decentralization (DEX).