#CEXvsDEX101

CEX vs. DEX refers to the comparison between centralized exchanges (CEX) and decentralized exchanges (DEX) in the cryptocurrency market. Each type has its own advantages and disadvantages.

Centralized exchanges are platforms operated by companies that facilitate trading between users. They offer high liquidity, user-friendly interfaces, and customer support. However, they require users to trust the exchange with their funds and personal information, which can pose security risks.

Decentralized exchanges, on the other hand, operate without a central authority. They allow users to trade directly with one another using smart contracts on the blockchain. This provides greater privacy and control over funds, reducing the risk of hacks. However, DEXs may have lower liquidity and can be more complex for beginners.

Ultimately, the choice between CEX and DEX depends on individual preferences regarding security, control, and ease of use in trading cryptocurrencies. Understanding these differences can help traders make informed decisions.