#CEXvsDEX101 #CEXvsDEX101
Understanding the difference between Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) is key in crypto trading. CEXs like Binance or Coinbase act as bintermediaries, offering user-friendly interfaces, high liquidity, and customer support—but they hold your funds, posing custody risk. DEXs like Uniswap or PancakeSwap run on smart contracts, allowing peer-to-peer trades without a middleman. They’re more private and give users full control of their assets, but may have lower liquidity and steeper learning curves. Both have pros and cons—your choice depends on your priorities: convenience vs. control, security vs. usability.