While both CEXs and DEXs let you trade crypto, they do it in fundamentally different ways. From how assets are stored to who gets access, the two models reflect opposite ends of the spectrum when it comes to control, trust, and openness.
Custody: When you use a centralized exchange, the platform holds your keys and controls your funds. On a DEX, you hold your keys and trade directly from your own wallet. There is no middleman.
Regulation and KYC: CEXs are built to comply with financial regulations. That means going through identity checks and getting account approval. DEXs are permissionless. Anyone with a wallet can use them—no ID required.
Security and transparency: CEXs run on private infrastructure. You do not always know what is happening behind the scenes. DEXs run on public smart contracts, where transactions and logic are visible onchain.
Access and inclusion: CEXs often limit access based on location, documentation, or financial history. DEXs do not have gatekeepers. If you have a wallet and an internet connection, you can trade.