There are two types of platforms, each type works differently.
● DEX platforms
● CEX platforms
◇ What is the difference between them?
If you don't know about them, I'll give you a brief about them.✔️👇
• Centralized exchanges (CEX)
◇ A centralized platform that acts as an intermediary between buyers and sellers, ensuring fast and convenient trading, much like a bank.
◇ When using CEX, your assets (coins) are stored on the exchange (platform).
Example Binance platform is considered within CEX
• Decentralized exchanges (DEX)
◇ A decentralized platform that operates without an intermediary, where transactions are executed using smart contracts👌.
◇ When using DEX, your assets stay with you in your wallet.
like :
PancakeSwap
✔️
○ Central CEXs
The platform controls all buying/selling operations.
Examples:
▪︎ Binance
▪︎ ByBit
▪︎ OKX
▪︎ Mexico
✔️
○ Decentralized Exchange (DEX)
All transactions are handled through smart contracts.
Examples:
▪︎ Uniswap
▪︎ PancakeSwap
