CEX and DEX are two types of cryptocurrency exchanges. CEX stands for Centralized Exchange, while DEX stands for Decentralized Exchange. The main difference between them is how they operate and the degree of centralization.
A CEX is a cryptocurrency exchange that is operated by a central authority or company. These exchanges have a centralized server or servers that manage the exchange's operations, such as order matching, order book management, and asset custody. In a CEX, users must create an account and pass through a verification process before they can trade. The CEX often charges fees for trading, withdrawal, or deposit.
On the other hand, a DEX is a cryptocurrency exchange that operates on a decentralized network, such as a blockchain. DEXs allow users to trade directly with each other without the need for a centralized authority or intermediary. Instead of a central server, DEXs rely on smart contracts or a network of nodes to manage the exchange. In a DEX, users have full control over their funds, and they do not need to pass through a verification process or disclose their personal information. Fees for trading are generally lower than on CEXs.
Overall, CEXs and DEXs have different advantages and disadvantages. CEXs offer greater liquidity, faster transaction speeds, and more advanced trading features, but they are also more vulnerable to hacks and cyber-attacks. DEXs offer greater privacy and security, but they are generally slower and have lower trading volumes. #Binance #cex #DEX #dyor