What is CEX?
CEX (Centralized Exchange) is a centralized cryptocurrency exchange managed by a company. It acts as an intermediary between buyers and sellers. Popular examples of CEX: Binance, Bybit, OKX, KuCoin, Bitget, Gate.io, and others.
How CEX works:
• Create an account and complete verification (KYC).
• Deposit fiat money or cryptocurrencies.
• Trade through the order book — the exchange finds counterparts for you.
• All transactions are processed within the exchange's system.
Advantages of CEX:
✔ Convenient interface
✔ High liquidity and transaction speed
✔ Support for multiple assets
✔ Possibility of fiat deposit/withdrawal
✔ Support and technical assistance
Disadvantages of CEX:
✖ Centralization = third-party control
✖ You do not own your funds (neither your keys nor your cryptocurrencies)
✖ Risks of hacks, account freezing, or scams by the exchange
What is DEX?
DEX (Decentralized Exchange) is a decentralized exchange that operates through smart contracts. It does not require registration or intermediaries: you connect to the platform directly through your cryptocurrency wallet. Examples: Uniswap, PancakeSwap, 1inch, dYdX, SushiSwap.
How DEX works:
• Connect your wallet (for example, MetaMask).
• The exchange takes place through a smart contract, often using liquidity pools.
• You always control your funds.
Advantages of DEX:
✔ Total control over assets
✔ Anonymity — no KYC required
✔ Lower fees (in some cases)
✔ Security — no single point of failure
Disadvantages of DEX:
✖ Less beginner-friendly interface
✖ Dependence on network load and gas
✖ Limited liquidity in small tokens
✖ No support for fiat currencies
