In the field of cryptocurrency trading, there are significant differences between centralized and decentralized exchanges. Centralized exchanges such as Binance and Coinbase are operated by companies that act as intermediaries to facilitate trades for users, with funds held in exchange accounts. They offer high liquidity, fast transaction speeds, and user-friendly interfaces, but carry trust risks, such as potential hacking attacks and restrictions on trading activities.

Decentralized exchanges, on the other hand, are based on blockchain and smart contracts, such as Uniswap and SushiSwap, where users trade directly on the chain, maintaining control of their private keys. They offer high security, privacy protection, and transaction transparency, but have lower liquidity, slower transaction speeds, and relatively complex operations.