#CEXvsDEX101

Cryptocurrencies can be traded on both centralized exchanges (CEXs) and decentralized exchanges (DEXs).

CEXs are managed by a central authority that oversees user funds and order books. They typically offer high liquidity, fast transaction speeds, and user-friendly interfaces. In contrast, DEXs operate without intermediaries, using smart contracts and liquidity pools to facilitate peer-to-peer trades—giving users full control over their assets.

Trading pairs like ETH/USDT are available on both types of platforms. On a CEX, this pair is handled through an order book that matches buy and sell orders. On a DEX, it uses an automated market maker (AMM) model, where prices adjust based on the ratio of tokens in the liquidity pool.

Choosing between a CEX and a DEX depends on your priorities—whether it's $ETH