Centralized exchanges (CEX) like Binance and Coinbase act as middlemen, holding users' funds and offering fast trading with high liquidity. They're user-friendly and offer features like fiat support, but users must trust the platform with their assets. In contrast, decentralized exchanges (DEX) like Uniswap or PancakeSwap let users trade directly from their wallets using smart contracts. DEXs provide more privacy and control, but can have higher fees, lower liquidity, and a steeper learning curve. CEXs are regulated and often insured, while DEXs are permissionless but riskier due to bugs in smart contracts. In short, CEX offers convenience and speed; DEX offers privacy and control. The choice depends on whether you value ease of use or full ownership of your crypto.
