#CEXvsDEX101

Cryptocurrency exchanges serve as the gateway for any individual into the fascinating world of crypto assets. Crypto exchanges are the most common destination for purchasing and selling cryptocurrencies of your choice. However, the Centralized Exchange vs Decentralized Exchange debate has been making headlines in crypto news for valid reasons. Crypto users are confused regarding the choice of a suitable trading platform from the two popular categories. Which one is the better crypto exchange? You might wonder about the possibilities for finding a crypto exchange when both offer crypto trading facilities. While centralized exchanges might serve as one of the dominant forces in the crypto industry, decentralized exchanges are making their presence felt. Therefore, it is important to draw out a clear CEX vs DEX comparison to reach a suitable choice between the two. The following discussion presents a clear outline of the differences between centralized exchanges and decentralized exchanges in the crypto world.

Before an overview of the DEX vs CEX difference, let us go through a basic understanding of crypto exchanges. Crypto exchanges are basically the stock exchanges for the crypto world. Just like you can purchase and sell assets such as shares and derivatives on stock exchanges, crypto exchanges allow you to purchase and sell blockchain-based tokens and coins. The two notable types of cryptocurrency exchanges include the first-generation platforms, which were more centralized in nature, and the recently emerging assortment of decentralized exchanges.

While both the players in the CEX vs DEX crypto exchange debate offer the functionality for crypto trading, they differ in many other factors. For example, the type of exchange plays a crucial role in determining how a specific transaction works. At the same time, the features for the user and flexibility also differ considerably in the two types of exchanges. Therefore, a fundamental overview of the two types of crypto exchanges can set the perfect tone for a comparison between them.