#CEXvsDEX101

Understanding the difference between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) is crucial for every crypto trader. CEXs like Binance or Coinbase are managed by companies and offer user-friendly interfaces, faster transactions, and customer support. However, they require KYC (Know Your Customer) and hold custody of your funds, which can be a security risk. On the other hand, DEXs like Uniswap or PancakeSwap allow peer-to-peer trading without intermediaries, offering more privacy and control over your assets. But they may lack liquidity and can be less beginner-friendly. Choosing between a CEX and a DEX depends on your goals, security preferences, and experience level.