CEX vs DEX: Complete Exchange Comparison
CEX (Centralized Exchange) is convenient but requires trusting the platform; DEX (Decentralized Exchange) gives you asset control but requires more technical knowledge. Both are essential parts of the crypto ecosystem.
TL;DR
CEX (Centralized Exchange) is convenient but requires trusting the platform; DEX (Decentralized Exchange) gives you asset control but requires more technical knowledge. Both are essential parts of the crypto ecosystem.
CEX: Centralized Exchange
Examples: Binance, Coinbase, OKX, Bybit, Kraken. Characteristics: requires registration and KYC; exchange holds your assets ("Not your keys, not your coins"); highest liquidity, minimal slippage; easy fiat on-ramp (credit card/bank transfer); rich derivatives (futures/options); platform failure risk (FTX collapsed 2022, ~$8B user losses) and hack risk. Best for: beginners, large trades, fiat on-ramping, leveraged trading.