The cryptocurrency exchange #中心化与去中心化交易所 is a platform that allows users to buy and sell cryptocurrencies, which can be divided into two types: centralized exchanges (CEX) and decentralized exchanges (DEX). Cryptocurrency exchanges typically offer various functions such as trading, storage, withdrawals, deposits, and different trading pairs.

CEX is similar to traditional banks, as they hold users' crypto assets and are responsible for processing transactions. Users need to rely on the exchange to fulfill its commitments and process the transfer of their cryptocurrencies. This means that users cannot control their private keys, and theoretically, the exchange can freeze or seize their assets. This may also increase the risk of cryptocurrency theft. We can find real-life examples to prove this. In 2018, the leak at the Coincheck exchange led to a massive theft incident worth $713 million.

On DEX, the exchange does not hold users' crypto assets but instead conducts transactions using smart contracts on the blockchain. This means that users always have their private keys and have complete control over their assets. DEX is just a matching platform that provides users with the environment needed for trading.