#CEXvsDEX101 Do you know the difference between Centralized Exchange (CEX) and Decentralized Exchange (DEX)? Here are the main differences:

**Centralized Exchanges (like Binance or Coinbase):**

- Operated by companies (require KYC).

- They hold your funds in their wallets.

- Characterized by high liquidity and fast execution.

- Ideal for beginners due to support for traditional currencies (fiat).

**Decentralized Exchanges (like Uniswap or PancakeSwap):**

- Do not control your funds (use self-custody wallets like Metamask).

- Do not require identification (maintain privacy).

- Rely on "liquidity pools" instead of buy/sell orders.

- Give you complete control, but mistakes are irreversible!

**Key Risks:**

- **CEX:** Server hacks or account freezes.

- **DEX:** User errors or hacked smart contracts.