#CEXvsDEX101🔥 Centralization vs Decentralization Battle in the Crypto World*
In the cryptocurrency ecosystem, the terms CEX and DEX are often discussed. Both are types of crypto exchanges, but they have different philosophies and ways of working. Let's discuss further!
*CEX (Centralized Exchange)*
CEX is a crypto exchange managed by a central entity. Examples include: Binance, Coinbase, and Kraken. In CEX, users entrust their assets to a third party (exchange) to conduct transactions. Advantages of CEX:
- High liquidity
- User-friendly interface
- Advanced trading features
However, CEX also has higher security risks because users do not have full control over their assets.
*DEX (Decentralized Exchange)*
DEX is a crypto exchange that operates without a central authority. Examples include: Uniswap and PancakeSwap. In DEX, transactions are conducted peer-to-peer through smart contracts, giving users full control over their assets. Advantages of DEX:
- Safer because there is no third party
- More transparent and cannot be censored