#CEXvsDEX10 : Understanding CEX and DEX Are you new to crypto exchanges? Let’s break it down simply!
What is CEX? (Centralized Exchange)
Definition: A CEX is managed by a single organization.
Custodial: They hold your funds in their wallets, meaning you don’t control your private keys.
Key Function: Acts as an intermediary, matching buyers and sellers, and managing the order book.
Example: Think of platforms like Binance or Coinbase where a central authority oversees trading.
What is DEX?
(Decentralized Exchange)
Definition: A DEX operates without a central authority controlling the trading process or holding your funds.
Decentralized Nature: Users retain control of their funds and private keys.
Example: Platforms like Uniswap or PancakeSwap, where trading happens peer-to-peer on the blockchain.
Key DifferenceCEX = Centralized with a middleman.DEX = Decentralized, giving you more control.
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