#CEXvsDEX101 .#CEXvsDEX101
Centralized exchanges (CEX) and decentralized exchanges (DEX) differ in their structure and functions. For example, Binance provides CEX with user-friendly interfaces, high liquidity, and diverse trading pairs. However, they require users to trust the platform with their assets. On the other hand, decentralized exchanges, like Uniswap, operate on blockchain technology, allowing peer-to-peer transactions without intermediaries. They prioritize security, transparency, and decentralization. While DEX offers greater control, they often suffer from lower liquidity and complexity. The choice between CEX and DEX depends on individual priorities: convenience and liquidity versus security and decentralization. Understanding the pros and cons is crucial for making informed decisions in the cryptocurrency space.
