When it comes to cryptocurrency trading, two main types of platforms emerge: centralized exchanges (CEX) and decentralized exchanges (DEX). A centralized platform like Binance or Coinbase is managed by a single entity that controls trading operations and holds funds. Users are required to create an account and verify their identity (KYC), which gives it a more organized and secure nature, but it places trust in a third party. On the other hand, decentralized platforms like Uniswap and PancakeSwap operate without intermediaries, relying on smart contracts to enable users to trade directly from their own wallets, without the need to hand over assets to a third party.