Comparison between Centralized and Decentralized Exchanges.
Cryptocurrency exchanges are mainly divided into two categories:
Centralized Exchanges (CEX): Platforms managed by companies that act as intermediaries. They offer high liquidity, user-friendly interfaces, and customer support. However, they require users to deposit funds, which implies trusting third parties.
Decentralized Exchanges (DEX): Operate without intermediaries, allowing direct transactions between users through smart contracts. They provide greater privacy and control over funds but may have lower liquidity and be less intuitive for beginners.
The choice between CEX and DEX will depend on the user's priorities in terms of security, control, and ease of use.