#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) represent different models for trading digital assets, each with its own advantages and disadvantages.

Centralized exchanges are operated by a single entity that oversees trading activities, such as "Binance" and "Coinbase". Their main advantages include ease of use, high liquidity, and speed in order execution. They also provide technical support and protection services for users. However, their disadvantages include the risk of hacking, as they store assets on centralized servers, in addition to the requirement of providing personal data (KYC), which may weaken privacy.

On the other hand, decentralized exchanges, such as "Uniswap" and "PancakeSwap", rely on smart contracts and allow users to trade without intermediaries. Their advantages include enhanced privacy, reduced risks of central hacking, and greater freedom in trading. However, they suffer from lower liquidity, relative difficulty in use, and sometimes high gas fees.