#CEXvsDEX101

Centralized exchanges (CEX) and decentralized exchanges (DEX) are two main types of cryptocurrency trading platforms. CEXs like Binance and Coinbase act as intermediaries, offering high liquidity, fast transactions, and user-friendly interfaces. They require user registration and hold custody of users’ funds, which can be risky if hacked. DEXs, such as Uniswap or PancakeSwap, operate without intermediaries, allowing peer-to-peer trading through smart contracts. Users retain control of their private keys and funds, enhancing security and privacy. However, DEXs may have lower liquidity, higher fees, and a steeper learning curve. Choosing between them depends on user preference for convenience versus control and privacy.