Centralized Exchange (CEX) vs. Decentralized Exchange (DEX)

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Centralized Exchange (CEX) is a traditional exchange platform where users deposit their funds and trade with each other.

Decentralized Exchange (DEX) is a decentralized platform where users trade directly from their own wallets without depositing funds.

CEX is typically owned and operated by a central authority, such as a company or organization.

DEX operates on a blockchain network and is typically not owned by any central authority.

CEX operates with a central order book, where trades are executed and matched by the exchange.

DEX operates with a decentralized order book, where trades are executed and matched by the users on the network.

CEX requires users to trust the central authority to secure their funds.

DEX eliminates the need for users to trust a central authority, as their funds are stored in their own wallets.

CEX often requires users to complete know-your-customer (KYC) and anti-money laundering (AML) procedures.

DEX typically does not require users to complete KYC and AML procedures.

CEX typically charges higher fees than DEX.