#CEXvsDEX101 ๐ CEX vs DEX: The Ultimate 101 Exchange Complete Guide ๐
1. CEXs provide centralized order books, liquidity, compliance; DEXs operate peer-to-peer, ensuring custody.
2. Liquidity on CEXs is deeper, offering lower spreads and fast execution; DEXs can experience fragmented liquidity but enable niche token trading.
3. CEX interfaces are user-friendly with support and tools; DEX interfaces require key management and smart contract interactions.
4. CEXs custody user funds, reducing responsibility but increasing platform risk; DEXs keep users in full control, minimizing vulnerabilities.
5. Fee structures differ: CEXs charge trading and withdrawal fees; DEXs incur network gas fees with often lower trading commissions.
6. CEXs enforce KYC/AML and may delist tokens; DEXs are permissionless, supporting borderless trading but lack oversight.
7. Token listings on CEXs undergo vetting, ensuring quality but slower additions; DEXs list assets instantly via liquidity pools, risking low-quality tokens.
8. Order book models on CEXs limit slippage; DEX automated market makers may incur higher slippage during low liquidity.
9. DEXs pioneer DeFi features like yield farming and governance; CEXs focus on products, futures, staking, and institutional services.
10. Risk management on CEXs relies on insurance funds and audits; DEXs depend on smart contract security and on-chain activities.
Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
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