Exchanges and How to Buy Crypto
CEX vs. DEX
Centralized Exchange (CEX)
A centralized exchange functions like a traditional bank, acting as a middleman that holds your money and processes trades. You trust the exchange to keep your cryptocurrency safe, similar to how you trust a bank with your money. Examples: Binance, Coinbase.
Decentralized Exchange (DEX)
A decentralized exchange operates like a marketplace where users trade directly with each other, without a middleman. You maintain control of your cryptocurrency, while the platform helps you find trading partners. This can be more complex to use, akin to a flea market where you trade goods directly with others, without a cashier. Examples: Uniswap, PancakeSwap.
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