#Liquidity101 Do you know the difference between centralized exchanges (CEX) and decentralized exchanges (DEX)? Here are the main differences:

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

- Managed by companies (require KYC).

- They hold your funds in their own wallets.

- Characterized by high liquidity and fast execution.

- Ideal for beginners as they support traditional currencies (fiat).