#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) differ in structure and operation. CEX, like Binance or Coinbase, are managed by a central authority, offering high liquidity, fast transactions, and user-friendly interfaces. They hold user funds, requiring trust, and often comply with regulations, but are prone to hacks or restrictions. DEX, like Uniswap or PancakeSwap, operate on blockchain protocols, enabling peer-to-peer trading without intermediaries. Users retain control of funds via wallets, enhancing security but facing lower liquidity and slower speeds. CEX suits beginners seeking convenience, while DEX appeals to those prioritizing privacy and decentralization. Both cater to different needs, with CEX offering fiat integration and DEX emphasizing trustless trading.