XvsDEX101 ### **1. Definitions and Key Differences** - **Centralized Exchanges (CEX):** Operated by companies (such as Binance and Coinbase), they act as intermediaries, holding users' funds and matching trades through order books. These exchanges prioritize ease of use, high liquidity, and compliance with regulatory requirements, but they require Know Your Customer (KYC) information and are susceptible to hacking or closure. - **Decentralized Exchanges (DEX):** Operated by smart contracts (such as Uniswap and PancakeSwap), decentralized exchanges allow peer-to-peer trading without intermediaries. Users retain their assets, trade without permission, and benefit from censorship resistance, but they face liquidity fragmentation and complexity in user experience.### **5. Which One to Choose?** - **Beginners:** Start with centralized trading exchanges (CEX) to simplify matters. - **Advanced Users:** Use decentralized trading exchanges (DEX) for control and innovation. - **Hybrid Approach:** Many traders benefit from both options (such as centralized trading exchanges (CEX) for entering the traditional currency market and decentralized trading exchanges (DEX) for diversifying tokens). For more information, see the full reports on [Growth of the Decentralized Exchanges Market Share]