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#CEXvsDEX101 A centralized exchange operates similarly to traditional financial institutions. These platforms are managed by a central authority or organization, which oversees the transactions between buyers and sellers. The crypto assets are stored on the platform, and users must trust the exchange to safeguard their funds.On the other hand, a decentralized exchange operates without a central authority. Trades occur directly between users, usually through automated smart contracts on blockchain networks. In DEXs, users retain full control over their crypto assets at all times, making it a trustless trading environment.
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#CEXvsDEX101 A centralized exchange operates similarly to traditional financial institutions. These platforms are managed by a central authority or organization, which oversees the transactions between buyers and sellers. The crypto assets are stored on the platform, and users must trust the exchange to safeguard their funds. On the other hand, a decentralized exchange operates without a central authority. Trades occur directly between users, usually through automated smart contracts on blockchain networks. In DEXs, users retain full control over their crypto assets at all times, making it a trustless trading environment.
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#CEXvsDEX101 A centralized exchange operates similarly to traditional financial institutions. These platforms are managed by a central authority or organization, which oversees the transactions between buyers and sellers. The crypto assets are stored on the platform, and users must trust the exchange to safeguard their funds.On the other hand, a decentralized exchange operates without a central authority. Trades occur directly between users, usually through automated smart contracts on blockchain networks. In DEXs, users retain full control over their crypto assets at all times, making it a trustless trading environment.
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