What is the difference between Cex and Dex?

Control Over Funds One of the most significant differences between CEX and DEX platforms lies in the level of control users have over their funds. In a CEX, the exchange acts as a custodian, holding and managing users’ funds on their behalf. As a result, users must trust the platform to secure their assets and handle transactions.

What is the difference between a Cex and a decentralized exchange?

As of February 2022, CEXs are still far more common than decentralized exchanges (DEXs). KPMG found that they accounted for around 95% of exchange crypto trading. The largest crypto exchange in the world is Binance, which is centralized although it has launched its own DEX.

How does Dex work?

Instead, you simply connect the DEX to your existing non-custodial wallet, using your own private keys to manage your funds. This is far more secure than the centralized option, and allows you to remain in control of your own assets. Centralized exchanges are also associated with ease of use.

What is a Cex & how does it work?

CEXs operate like traditional stock markets based on an order book. Think of them like an open market with a central authority matching buyers and sellers. On a CEX, it’s standard for all users to be able to see the full order book (i.e., all the buy and sell orders occurring on the exchange).