Security: DEXs operate without a central authority, meaning users maintain control of their private keys and assets, reducing the risk of hacks or exchange failures. CEXs, on the other hand, store users' assets, making them vulnerable to cyberattacks and internal breaches.

Liquidity: CEXs typically offer higher liquidity due to their larger user base and market makers, resulting in quicker trades and tighter spreads. DEXs rely on liquidity pools, and while liquidity can be lower, it is improving with DeFi innovations and automated market makers (AMMs).