#CEXvsDEX101

Let's break down the basics of CEX vs DEX:

CEX (Centralized Exchange)

• A platform where a central authority manages transactions, custody of assets, and provides liquidity.

• Examples: Binance, Coinbase

• Pros:

- User-friendly interface

- High liquidity

- Fast transactions

• Cons:

- Centralized risk (hacking, downtime)

- Potential for censorship

- May require KYC

DEX (Decentralized Exchange)

• A platform where transactions occur directly between users, without a central authority, using smart contracts.

• Examples: Uniswap, PancakeSwap

• Pros:

- Decentralized, trustless, and censorship-resistant

- Users control their assets

- Often more secure

• Cons:

- Can be complex to use

- Lower liquidity

- Potential for higher fees

Which one do you prefer? Or do you have specific questions about CEX or DEX?