CEX – Centralized Exchange
• Definition: A platform for trading cryptocurrencies operated by a company or organization that acts as an intermediary and manager of users' funds.
• Examples: Binance, Coinbase, Kraken, Bitfinex.
• How does it work?
• Users create an account, deposit cryptocurrencies or fiat.
• The exchange manages wallets and executes orders. DEX – Decentralized Exchange
• Definition: A platform operating on the blockchain, where trading occurs without an intermediary, and users control their private keys.
• Examples: Uniswap, SushiSwap, PancakeSwap, 1inch.
• How does it work?
• Users connect to the exchange using a wallet (e.g., MetaMask).
• Transactions are executed directly from the wallet on the blockchain.
