#CEXvsDEX101

#CEXvsDEX101 📢 #CEXvsDEX101 | Learn about the difference between centralized and decentralized platforms!

In the world of cryptocurrencies, it is important to distinguish between centralized exchanges (CEX) and decentralized exchanges (DEX). Centralized platforms like Binance and Coinbase are managed by companies that act as intermediaries between the seller and the buyer, providing high liquidity and fast execution of trades, but they require identity verification (KYC) and storage of assets within the platform, which may expose users to risks of hacking or freezing.

On the other hand, decentralized platforms like Uniswap and PancakeSwap rely on smart contracts and do not require an intermediary, giving the user full control over their funds and privacy. However, they may suffer from lower liquidity and high gas fees on some networks.