#CEXvsDEX101 **CEX vs DEX: Centralized vs. Decentralized Exchanges**

Centralized exchanges (CEXs) and decentralized exchanges (DEXs) are the two main platforms for trading cryptocurrencies, each with distinct advantages and drawbacks.

**CEXs**, like Binance and Coinbase, are operated by companies that facilitate trading, offering high liquidity, fast transactions, and user-friendly interfaces. However, they require users to trust the platform with their funds, making them vulnerable to hacks and regulatory scrutiny.

**DEXs**, such as Uniswap and PancakeSwap, operate on blockchain networks without intermediaries, allowing peer-to-peer trading. They prioritize security, privacy, and censorship resistance since users retain control of their assets. However, DEXs often suffer from lower liquidity, slower speeds, and complex interfaces.

While CEXs dominate in volume and accessibility, DEXs align with crypto’s decentralized ethos. The choice depends on priorities—convenience (CEX) vs. autonomy (DEX).