#CEXvsDEX101 What is a centralized exchange (CEX)?

A centralized exchange is a trading platform that acts as an intermediary between buyers and sellers in the cryptocurrency market. It accepts orders, manages user accounts, and controls private keys.

CEXs are popular among newcomers to cryptocurrencies as they handle the entire transaction process, providing a fast and easy user experience.

Users of centralized exchanges rely solely on CEX's security protocols to protect their assets. While most exchanges employ excellent security measures, they often become targets for large-scale hacking attacks. This is why you should keep your funds in a personal wallet to protect them from such intrusions.

What is a decentralized exchange (DEX)?

A decentralized exchange is a peer-to-peer trading platform where you can trade cryptocurrencies directly with other users, bypassing an intermediary.

DEXs can be considered a more independent option compared to CEX. Unlike CEX, they do not store users' funds or private keys.