#CEXvsDEX101 CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchanges that differ in their organization and control over users' assets. CEX is a centralized exchange where transactions occur under the control of a single organization acting as an intermediary between buyers and sellers. DEX is a decentralized exchange where trades happen directly between users without an intermediary, using smart contracts on the blockchain.

Key Differences:

Control over Assets:

On CEX, the platform holds your keys and controls your funds, whereas on DEX you hold your keys and trade directly from your wallet.

Regulation and KYC:

CEX must comply with financial regulations and require identity verification, while DEX is an "unregulated" platform where identification is not required.

Security and Transparency:

CEX operates on private infrastructure, making it difficult to understand what happens "behind the scenes," while DEX uses public smart contracts, and all transactions and logic are visible on the blockchain.

Access and Inclusivity:

CEX often restrict access based on location, documentation, or financial history, while DEX