#CEXvsDEX101 Cryptocurrency exchanges are often compared to traditional financial institutions, such as banks, but regulatory oversight over them is still being formed, and the requirements remain vague. Currently, there is a trend towards transitioning from CEX exchanges to DEX. Dissatisfaction with centralized exchanges is growing due to centralization, loss of anonymity, 90% of tokens being unprofitable after listing in 2025, scandals regarding project quality, issues with stablecoins and security. For example, the attack on Bybit heightened concerns about risks. Some users are considering a transition to DEX or alternative exchange methods, but they are still in the minority. Centralized exchanges offer a variety of services – derivative trading, deposits, lending – in a comprehensible format. Cryptocurrency from CEX is considered 'clean', while assets from DEX may raise suspicions due to the risk of money laundering. Regulation protects investors and provides clarity on responsibility, which DEX do not guarantee.
It concerns improving the system.