#CEXvsDEX101 CEX – Centralized Exchange (Centralized Exchange)

• Definition: A platform for trading cryptocurrencies operated by a company or organization that acts as an intermediary and manager of users' funds.

• Examples: Binance, Coinbase, Kraken, Bitfinex.

• How does it work?

• Users create an account, deposit cryptocurrencies or fiat.

• The exchange manages wallets and executes orders. DEX – Decentralized Exchange (Decentralized Exchange)

• Definition: A platform operating on the blockchain, where trading occurs without an intermediary, and users control their private keys.

• Examples: Uniswap, SushiSwap, PancakeSwap, 1inch.

• How does it work?

• Users connect to the exchange using a wallet (e.g., MetaMask).

• Transactions are executed directly from the wallet on the blockchain.