#CEXvsDEX101

Cryptocurrency exchanges play a pivotal role in the digital asset ecosystem as they facilitate the buying, selling, and trading of various cryptocurrencies.

Now, significantly, there are two main models when it comes to exchanges — centralized exchanges (CEX) and decentralized exchanges (DEX).

Centralized Exchanges (CEX). Centralized exchanges operate as intermediaries between buyers and sellers, providing a user-friendly platform for trading cryptocurrencies. These exchanges offer high liquidity, a wide range of trading pairs, and advanced trading features, making them popular among both novice and experienced traders. However, they also come with certain problems like custodial control of funds, centralized security risks, and potential regulatory challenges. Examples of CEX include:

- Binance

- ByBit

- OKX

- KuCoin

- Coinbase

- Quidax

- MyCredly

Decentralized Exchanges (DEX). Decentralized exchanges operate on blockchain technology without a central authority. Users trade directly with each other using smart contracts, ensuring greater control over their funds and enhanced privacy. DEX platforms champion principles of decentralization, transparency, and censorship resistance. Despite their advantages, DEXs face problems like liquidity constraints, user experience issues, and front-running vulnerabilities. Examples of DEX include:

- Trust Wallet

- Uniswap

- Metamask

- Pancake Swap

- Balancer

- Coinomi