#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency trading platforms that differ in their architecture and functionality.

*Key Differences:*

- *Centralization*: CEX operates on a centralized platform, where users' funds are managed and transactions are executed through a central authority. DEX, on the other hand, operates on a decentralized network, allowing peer-to-peer transactions without intermediaries.

- *Security*: CEX is more vulnerable to hacking and security risks due to its centralized nature. DEX is considered more secure since users' funds are not stored in a single location.

- *Regulation*: CEX is subject to stricter regulations and often requires users to undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. DEX typically has fewer regulations and greater anonymity.

- *Liquidity*: CEX often has higher liquidity due to its larger user base and market makers. DEX liquidity can be lower due to its decentralized nature.

Ultimately, the choice between CEX and DEX depends on individual preferences regarding security, regulation, and liquidity.