Comparison of Centralized and Decentralized Exchanges
Centralized Exchanges (CEX)
**Key Features:**
- **Ease of Use**: Intuitive interface suitable for beginners
- **Liquidity**: Generally higher liquidity and trading volumes
- **Speed**: Instant order execution
- **Support**: Customer support and access recovery options
- **Regulation**: Often operate within regulatory requirements
Decentralized Exchanges (DEX)
**Key Features:**
- **Security**: No need to trust funds to a third party
- **Privacy**: Minimal KYC/AML requirements
- **Control**: Users retain control over their private keys
- **Censorship Resistance**: No central governing authority
- **Innovation**: Often offer new DeFi features
**Optimal Approach:**
Many experienced crypto investors use both CEX and DEX depending on specific needs.
