#CEXvsDEX101 The world of cryptocurrency trading offers two primary types of exchanges: Centralized Exchanges (CEX) and Decentralized Exchanges (DEX). Understanding the differences between these two can help traders and investors make informed decisions.
*Centralized Exchanges (CEX):*
- *Characteristics:* CEXs are operated by a central authority, which manages transactions, custody of assets, and user accounts.
- *Advantages:* High liquidity, user-friendly interfaces, and robust security measures.
- *Disadvantages:* Vulnerable to single points of failure, potential for censorship, and risk of asset seizure.
