Centralized exchanges (CEX) and decentralized exchanges (DEX) are the two main trading models in the cryptocurrency market. CEX is operated by centralized institutions, where users must entrust their assets to the platform, relying on it for trade execution. The advantages include high liquidity, fast execution, and a user-friendly interface, but there are risks associated with custodianship, regulatory compliance pressures, and potential security vulnerabilities. DEX is based on blockchain and smart contracts, allowing users to control their assets independently, with transparent and high privacy transactions. However, it is limited by blockchain performance, resulting in slower transaction speeds, insufficient liquidity, and higher operational thresholds. Currently, CEX still dominates the market, but DEX is gradually enhancing its competitiveness through innovations like Layer 2 scaling and cross-chain technology. In the future, the two may tend toward integration, combining efficiency with decentralized characteristics.