#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two major types of cryptocurrency trading platforms, each with unique features and advantages.

A *CEX* like Binance, Coinbase, or Kraken is operated by a central authority. It offers a user-friendly interface, high liquidity, fast transactions, and support for fiat currencies. Users deposit funds into the exchange, which holds custody of their assets. This makes CEXs easier for beginners but also creates a single point of failure—vulnerable to hacks or government restrictions.

In contrast, a *DEX* like Uniswap, PancakeSwap, or SushiSwap operates on smart contracts without a central authority. Users trade directly from their wallets, maintaining full control of their assets. DEXs promote privacy, decentralization, and censorship resistance. However, they often have lower liquidity, slower trade speeds, and a steeper learning curve. Also, DEXs typically don’t support fiat.

*CEX vs DEX 101* highlights the trade-off between convenience and control. CEXs are ideal for fast, regulated trading, while DEXs suit users seeking autonomy and privacy. The choice depends on user needs—whether security, ease of use, or decentralization matters more.