#CryptoSecurity101

Centralized Exchanges (CEX):*

- *Characteristics:* CEXs are operated by a central authority, which manages transactions, custody of assets, and user accounts.

- *Advantages:* High liquidity, user-friendly interfaces, and robust security measures.

- *Disadvantages:* Vulnerable to single points of failure, potential for censorship, and risk of asset seizure.

*Decentralized Exchanges (DEX):*

- *Characteristics:* DEXs operate on blockchain technology, allowing peer-to-peer transactions without intermediaries.

- *Advantages:* Increased security, transparency, and autonomy, as users control their assets.

- *Disadvantages:* Often suffer from lower liquidity, more complex interfaces, and potential regulatory uncertainty.

*Key Differences:*

- *Custody:* CEXs hold users' assets, while DEXs allow users to retain control.