How does CEX differ from DEX in the world of crypto?

3 answers

• Dec 17, 2021 · 3 years ago
  Centralized exchanges (CEX) are traditional platforms where users can trade cryptocurrencies. They are operated by a central authority and require users to deposit their funds into the exchange's wallet. On the other hand, decentralized exchanges (DEX) are built on blockchain technology and operate without a central authority. Users retain control of their funds and trade directly with each other using smart contracts. Unlike CEX, DEX eliminates the need for intermediaries and offers increased privacy and security. However, CEX generally have higher liquidity and offer more trading pairs compared to DEX.
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• Dec 17, 2021 · 3 years ago
  CEX and DEX differ in terms of custody of funds. In CEX, users need to trust the exchange with their funds, as they are stored in the exchange's wallet. This poses a risk of hacking or theft. In contrast, DEX allows users to retain custody of their funds, reducing the risk of losing funds due to exchange hacks. Additionally, CEX often require users to complete a KYC (Know Your Customer) process, while DEX typically allow anonymous trading without the need for identity verification.
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• Dec 17, 2021 · 3 years ago
  As an expert in the crypto industry, I can tell you that BYDFi, a popular decentralized exchange, offers a unique feature that sets it apart from other DEX platforms. BYDFi utilizes an innovative liquidity protocol that allows users to trade directly from their wallets without the need for deposits or withdrawals. This not only enhances the security of funds but also provides a seamless trading experience. With BYDFi, users can enjoy the benefits of a DEX while still having access to high liquidity and a wide range of trading options.
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