#CEXvsDEX101 A centralized exchange (CEX) offers cryptocurrency trading services to registered users. Its main service is usually to match buyers and sellers in an order book, although it may offer other crypto products to its verified users. For beginners, a CEX provides the simplest way to enter this world without the need for extensive knowledge of the blockchain infrastructure and tools.

A decentralized exchange (DEX) utilizes smart contracts on the chain to carry out its trading services. In most cases, users exchange tokens in liquidity pools, with liquidity provided by other users in exchange for swap fees.

In a DEX, registration is not required, which means they are open to anyone with a wallet and cryptocurrencies. DEXs are the gateway to the world of decentralized finance (DeFi) and give users a lot of freedom. However, they lack the support that a CEX can provide. Moreover, in a DEX, it can be very easy to make irreversible mistakes while using it.