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What Are the Trade-Offs between a Centralized and Decentralized Exchange (DEX) for Token Trading?

Centralized exchanges (CEXs) offer high liquidity, faster transaction speeds, and a simpler user experience, but they require users to give up custody of their funds. Decentralized exchanges (DEXs) allow users to retain self-custody and trade directly from their wallets, offering greater transparency and censorship resistance.

However, DEXs can suffer from higher transaction costs and lower liquidity, especially for newer tokens.

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