#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchanges that differ in their architecture and operation.

*CEX:*

- Centralized platform operated by a single entity

- Users deposit funds into the exchange's wallets

- Trades are executed on the exchange's servers

- Examples: Binance, Coinbase

*DEX:*

- Decentralized platform that operates on a blockchain

- Users retain control of their funds in personal wallets

- Trades are executed on the blockchain through smart contracts

- Examples: Uniswap, SushiSwap

Key differences:

- *Security*: CEXs are more vulnerable to hacking, while DEXs are more secure due to decentralization.

- *Control*: CEXs hold users' funds, while DEXs give users full control.

- *Regulation*: CEXs are more susceptible to regulatory oversight, while DEXs operate more autonomously.

Ultimately, CEXs offer convenience and liquidity, while DEXs provide decentralization and security. Traders choose between the two based on their priorities and risk tolerance.