#CEXvsDEX101

#CEXvsDEX101

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are platforms for trading cryptocurrencies, but they function very differently.

A CEX like Binance or Coinbase acts as a middleman. It’s user-friendly, offers high liquidity, and supports fiat transactions, but requires users to trust the platform with their funds and data. Account creation usually involves KYC (Know Your Customer) verification.

In contrast, a DEX like Uniswap or PancakeSwap is trustless and peer-to-peer. Trades happen directly between users through smart contracts, and there's no need to share personal information. You remain in control of your private keys, enhancing security and privacy. However, DEXs may have lower liquidity, fewer features, and can be more complex for beginners.

In summary, CEXs are convenient and beginner-friendly, while DEXs offer more privacy and control. The choice depends on your priorities—ease and speed, or autonomy and security.