#CEXvsDEX101 Trading Experience in CEX vs DEX

DAX users hold their own private keys and personal information – no KYC compliance is required. There are two types of DEXs: those with an order book system (LoopRing, Gnosis Protocol, or IDEX) and those with innovative automated market makers (Uniswap was the first to adopt this model). DEXs can list more trading pairs as the listing process is not as demanding as with CEXs.

Despite the rapid evolution of Decentralized Finance (DeFi), CEXs remain extremely popular due to their high level of liquidity and security. CEXs use the order book system to match buy and sell prices, which means that the more orders there are, the more liquid the market will be. CEXs also provide fiat-crypto trading pairs and act as collateral for the completion of transactions. They are particularly beginner-friendly – most individual investors made their first crypto transactions “on-ramp” or, in simpler terms, with their credit cards. Bitget is an excellent example of leading centralized trading platforms, with 2 million users (8,000 of whom are active daily) and ranking 3rd in terms of liquidity.