The Difference Between CEX and DEX: What You Need to Know?

Centralized exchanges (CEX) like Binance and Coinbase are managed by companies and provide an easy and fast experience, with high liquidity and customer support. However, they require identity verification and hold users' funds, increasing the risk of hacking.

In contrast, decentralized exchanges (DEX) like Uniswap and PancakeSwap operate through smart contracts without intermediaries, giving users full control over their funds. However, they are less liquid and can be complex for beginners.

The choice between CEX and DEX depends on your priorities: security and control, or speed and ease of use. Each type has its advantages and challenges.