#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two types of cryptocurrency trading platforms. CEXs, like Binance and Coinbase, are user-friendly, offer high liquidity, and support fiat transactions. However, they require trust in a third party, may have security risks, and demand KYC verification. DEXs, such as Uniswap and PancakeSwap, enable peer-to-peer trading without intermediaries, prioritizing privacy, control, and decentralization. While DEXs offer greater security and anonymity, they can be complex, have lower liquidity, and higher gas fees.

*Key differences:*

- *Control*: CEXs hold your funds, while DEXs let you control your assets

- *Security*: CEXs are vulnerable to hacks, while DEXs are more secure but depend on user caution

- *Ease of use*: CEXs are beginner-friendly, while DEXs require technical knowledge

- *Anonymity*: DEXs offer more private transactions, while CEXs require KYC verification

Choose a CEX for convenience and speed or a DEX for privacy and control ¹.