#CEXvsDEX101

Centralized Exchanges (CEX) are managed by companies that offer user-friendly interfaces, high liquidity, and fiat support but require KYC and hold users’ funds, making them vulnerable to hacks. Decentralized Exchanges (DEX), on the other hand, run on smart contracts, allowing users full control of their assets and greater privacy. However, they may have lower liquidity, higher gas fees, and are less beginner-friendly. CEXs are ideal for convenience and advanced trading tools, while DEXs suit users who value decentralization and security. Many traders use both depending on their needs, balancing ease of use with privacy and control over their assets.