#中心化与去中心化交易所 # Comparison of Centralized and Decentralized Exchanges

Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) are two main models of cryptocurrency trading, each with its own characteristics and advantages and disadvantages.

## Centralized Exchanges (CEX)

**Characteristics:**

- Operated and managed by a central authority

- Users need to deposit assets into the exchange wallet

- Match trades using an order book model

**Advantages:**

- Fast transaction speed, high liquidity

- Supports fiat currency deposits and more trading pairs

- Provides a wider range of trading tools (leverage, futures, etc.)

- User-friendly experience with comprehensive customer support

**Disadvantages:**

- Risks of single point of failure (hacker attacks, exit scams, etc.)

- Requires KYC identity verification

- Transactions are not transparent, potential for manipulation

## Decentralized Exchanges (DEX)

**Characteristics:**

- Operates based on blockchain smart contracts

- Users self-custody their assets (non-custodial)

- Uses Automated Market Makers (AMM) or peer-to-peer models

**Advantages:**

- No need to trust a third party, assets are under personal control

- Strong anonymity, usually no KYC required

- Resistant to censorship, difficult to shut down

- Transactions are transparent and verifiable

**Disadvantages:**

- Liquidity is usually lower

- Slower transaction speed, high gas fees

- User experience can be complicated

- Lack of customer support

## Development Trends

Currently, the industry shows a coexistence and complementarity between CEX and DEX, with many exchanges beginning to explore hybrid models that combine the advantages of both. As the regulatory environment changes and technology develops, the boundaries between the two may gradually blur.