#CEXvsDEX101

a centralized exchange is a cryptocurrency trading platform run by a company or organization that acts as the go-between for buyers and sellers. Think Coinbase, Kraken, or Binance. These platforms let you buy and sell crypto using US Dollars and other fiat currency, and you can also trade between coins and tokens directly on the platform.

A decentralized exchange is a crypto trading platform that connects buyers and sellers directly through smart contracts. There is no middleman. You trade right from your wallet, not through a company. That is a major shift from how centralized exchanges work.