#CEXvsDEX101 By controlling the platform infrastructure, CEXs can match trades internally without requiring every transaction to be settled on the blockchain. A DEX relies on a blockchain network for every trade, which increases the time to settlement. Transaction speeds on DEXs may also be more variable.

CEXs are run by companies and hold your funds (custodial). DEXs are powered by code — you trade directly from your wallet (non-custodial). CEX = Requires KYC and user identity verification. DEX = Usually no KYC; trade anonymously and maintain privacy.