#CEXvsDEX101 #CEXvsDEX101 is a fundamental topic in the world of cryptocurrencies. Here I explain the key differences between centralized exchanges (CEX) and decentralized exchanges (DEX):

*CEX (Centralized Exchanges)*

- *Definition*: Cryptocurrency exchange platforms that act as intermediaries between buyers and sellers.

- *Advantages*: Easy to use, high liquidity, variety of cryptocurrencies available.

- *Disadvantages*: Risk of hacks, centralized control over funds, potential privacy issues.

*DEX (Decentralized Exchanges)*

- *Definition*: Cryptocurrency exchange platforms that operate without intermediaries, using smart contracts and blockchain.

- *Advantages*: Greater security, privacy and control over funds, lower risk of hacks.

- *Disadvantages*: Can be more complex to use, lower liquidity compared to CEX.

The choice between a CEX and a DEX depends on your needs and priorities. If you value ease of use and liquidity, a CEX might be the best option. If you prefer security and privacy, a DEX could be the better choice.