#CEXvsDEX101 #CEXvsDEX101 is a term used to compare two types of exchanges in the field of digital currencies: centralized exchanges (CEX) and decentralized exchanges (DEX).
Centralized Exchanges (CEX)
- *Description*: Centralized exchanges managed by central entities, providing a platform for trading digital currencies.
- *Advantages*: Ease of use, high liquidity, customer support.
- *Disadvantages*: Security risks, need to trust the central entity.
Decentralized Exchanges (DEX)
- *Description*: Decentralized exchanges operating on blockchain networks, allowing trading of digital currencies without the need for intermediaries.
- *Advantages*: Higher security, no need to trust a central entity, more privacy.
- *Disadvantages*: May be complex to use, lower liquidity compared to centralized exchanges.
Conclusion
#CEXvsDEX101 shows the differences between centralized and decentralized exchanges, helping traders choose the type that suits their needs and strategies.