CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency trading platforms with distinct approaches. CEXs like Binance or Coinbase are managed by centralized entities, offering high liquidity, user-friendly interfaces, and fast transactions. However, users must give up control of their assets. On the other hand, DEXs like Uniswap or PancakeSwap enable peer-to-peer trading without intermediaries, allowing users to retain full control of their funds. While DEXs are more transparent and resistant to central points of failure, they often have lower liquidity and can be less beginner-friendly. Choosing between a CEX and a DEX depends on user priorities: convenience versus decentralization and control.
