#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are platforms for trading cryptocurrencies. CEXs like Binance or Coinbase are operated by companies that manage user accounts, order books, and custody of funds. They offer high liquidity, fast transactions, and user-friendly interfaces. However, users must trust the exchange with their funds and personal data. In contrast, DEXs like Uniswap or PancakeSwap allow peer-to-peer trading without intermediaries. Users retain control of their private keys, enhancing security and privacy. However, DEXs may face slower transactions and lower liquidity. Ultimately, CEXs are convenient for beginners, while DEXs appeal to users seeking more control.