Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) differ in how they operate. CEXs, like Binance or Coinbase, act as intermediaries holding users’ funds and executing trades. They’re user-friendly and fast but require trust in the platform. DEXs, like Uniswap or PancakeSwap, allow peer-to-peer trading using smart contracts without a central authority. Users retain control of their funds, which boosts privacy and security, but DEXs may have lower liquidity and slower speeds. Choosing between a CEX or DEX depends on your need for convenience, privacy, and control. Ideally, understanding both helps you become a more versatile and informed trader.

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