Centralized Exchanges (CEX): Managed by a single entity, CEXs offer high transaction speeds and user-friendly interfaces but require users to trust the platform with their funds. They typically provide greater liquidity and customer support.
Decentralized Exchanges (DEX): Operate without a central authority, allowing users to trade directly with each other. DEXs offer enhanced privacy and security since users retain control over their funds, but they may have lower liquidity and slower transaction speeds compared to CEXs.