#CEXvsDEX101 — this term, in the context of cryptocurrency exchanges, refers to the comparison of centralized (CEX) and decentralized (DEX) platforms. Below are the main features of each type of exchange. Centralized Exchanges (CEX) CEX (Centralized Exchange) is a platform for trading cryptocurrencies that is managed by a single company. It acts as an intermediary between buyers and sellers and is responsible for all transactions on the platform. Some features of CEX: User funds are stored in exchange accounts. Registration and identity verification (KYC) are usually required to operate. Trading operations are based on an order book, where buyers place requests to buy and sellers to sell. Decentralized Exchanges (DEX) DEX (Decentralized Exchange) is a platform for trading cryptocurrencies that operates without intermediaries. All transactions occur directly between users through smart contracts. Some features of DEX: Assets remain in users' wallets, reducing the risks of hacking and loss of funds. Most DEX do not require verification (KYC), allowing for privacy preservation. Transactions are recorded on the blockchain, ensuring transparency and immutability of transactions.
