#CEXvsDEX101 CEX vs. DEX: Understanding the DifferenceCentralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two primary platforms for trading cryptocurrencies, each with distinct features. CEXs, like Binance or Coinbase, operate through a centralized authority, offering user-friendly interfaces, high liquidity, and fast transaction speeds. They custody users’ funds, requiring KYC compliance, which enhances security but compromises privacy. However, CEXs are vulnerable to hacks and regulatory risks. In contrast, DEXs, like Uniswap or PancakeSwap, function on blockchain technology without intermediaries, enabling peer-to-peer trading. Users retain control of their funds via private wallets, ensuring greater privacy and security. However, DEXs often face lower liquidity, higher slippage, and complex interfaces, making them less beginner-friendly. While CEXs suit traders prioritizing convenience and speed, DEXs appeal to those valuing decentralization and anonymity.