#CEXvsDEX101 Centralized Exchanges (CEXs) are important because they provide a structured and regulated environment for trading cryptocurrencies, offering features like faster transaction speeds, higher liquidity, and user-friendly interfaces. They also play a crucial role in the crypto ecosystem by facilitating on- and off-ramps for participants, according to CEX.IO.

Here's a more detailed breakdown of why CEXs are important:

Faster Transactions:

CEXs can match trades internally, leading to faster transaction speeds compared to Decentralized Exchanges (DEXs), which rely on blockchain networks for every transaction.

Higher Liquidity:

CEXs often have larger user bases and institutional partnerships, resulting in higher liquidity, making it easier and faster to execute