CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchange platforms that differ in how they operate and manage transactions. Here are the simple differences between CEX and DEX:
🏅CEX (Centralized Exchange)*
💓 Managed by a third party*: CEX is managed by a company or organization that acts as an intermediary between buyers and sellers of cryptocurrencies.
💓 Fund storage: User funds are stored on the CEX platform, which means users do not have direct control over their funds.
💓 Centralized transactions: Transactions are carried out through the CEX platform, which means that the platform has control over transactions and can block or restrict access to user funds.
💓 Easier to use: CEX usually has a more user-friendly interface and is easier to use, especially for new users.
🏅DEX (Decentralized Exchange)*
💓 Managed by the community*: DEX is managed by the community of users and there is no third party acting as an intermediary.
💓 Fund storage: User funds are stored in their private wallets, which means users have direct control over their funds.
💓 Decentralized transactions: Transactions are carried out directly between users, without the need for intermediaries.
💓 More complex: DEX can be more complex to use, especially for new users, as it requires knowledge of how to use cryptocurrency wallets and conduct transactions independently.
Overall, CEX is easier to use and more popular among new users, but DEX offers more control and security for more experienced users. . . !!!!
