#CEXvsDEX101

available on both centralized exchanges (CEXs) and decentralized exchanges (DEXs). In a CEX, trades are facilitated by a central authority that manages user funds and order books, offering high liquidity and user-friendly interfaces. Conversely, a DEX operates without intermediaries, using smart contracts and liquidity pools to enable peer-to-peer trading, granting users full control over their assets .

Trading pairs like ETH/USDT can exist on both platforms. On a CEX, this pair would be managed through an order book, matching buy and sell orders. On a DEX, the same pair would rely on an automated market maker (AMM) model, where prices are determined by the ratio of assets in a liquidity pool .

The choice between trading on a CEX or DEX depends on factors like desired control over funds, privacy preferences, and tolerance for potential risks associated with each platform type.