#CEXvsDEX101

When entering the world of cryptocurrencies, it is important to understand the difference between centralized exchanges (CEX) and decentralized exchanges (DEX), as this decision directly affects how you trade and the security of your funds. Centralized exchanges like Binance and Coinbase act as intermediaries between the seller and the buyer, and are characterized by ease of use, high liquidity, and fast execution of trades. However, they require registration, identity verification, and hold your wallet keys, making them a target for cyber attacks.

On the other hand, decentralized exchanges like Uniswap and PancakeSwap do not rely on an intermediary party, allowing you to trade directly from your own wallet without the need to disclose your identity. This enhances privacy and control over your funds, but it may come with lower liquidity and higher gas fees at times. Understanding the differences between CEX and DEX helps you make more informed and secure trading decisions.