#CEXvsDEX101 In the world of cryptocurrencies, CEX (centralized) exchanges are platforms managed by companies that allow users to buy, sell, and trade cryptocurrencies, while DEX (decentralized) operate without a central intermediary, using smart contracts and blockchain.
Centralized Exchanges (CEX):
Operation:
CEX operate like traditional exchange platforms, where the company manages transactions and users' funds.
Examples:
Binance, Coinbase, Bybit, Bitget, Okx are examples of popular CEX.
Advantages:
Higher liquidity, ease of use, customer support, and access to fiat currencies.
Disadvantages:
Higher risk of centralization, possible company control over users' funds and transactions.
Decentralized Exchanges (DEX):
Operation:
DEX operate without a centralized intermediary, using smart contracts on blockchain to facilitate transactions between users.
Examples:
Uniswap, SushiSwap, KyberSwap are examples of popular DEX.
Advantages:
Greater privacy, user control over funds, greater transparency, and higher security compared to some CEX.
Disadvantages:
Less liquidity, greater difficulty of use for novice users, higher risk of hacks, and greater technical complexity.
In summary, the choice between a CEX and a DEX depends on the preferences of each user. CEX offer greater ease of use and liquidity, while DEX provide greater privacy and control over funds.