#CEXvsDEX101 In the world of crypto trading, understanding the difference between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) is key. CEXs like Binance or Coinbase are managed by companies that facilitate trades, offer high liquidity, fast transactions, and user-friendly interfaces. However, they require users to complete KYC and trust the platform with their funds, which can be a security risk if hacked.

DEXs like Uniswap or PancakeSwap operate without intermediaries, using smart contracts and blockchain technology to enable peer-to-peer trading. You keep control of your private keys, enhancing security and privacy. But DEXs often have lower liquidity, slower transaction times, and can be more complex for beginners.

CEXs are ideal for fast, simple trades, while DEXs appeal to users who value decentralization and control. Choosing between them depends on your priorities—convenience vs. control. Understanding both gives you flexibility and power in the crypto world.