DEX VS CEX

Centralized EX

Cryptocurrency centralized exchanges (CEX) are similar to traditional stock exchanges, but unlike them, crypto exchanges do not have brokers. CEX is an intermediary in trading between users and guarantees the security of transactions.

Pros:

Simple and convenient
CEX is the most accessible crypto trading platform and is easy for any beginner to understand. It is enough to register or KYC check, deposit funds, and you can trade crypto assets.

Cons:

Secureness
The user’s cryptocurrencies are stored in the wallets of the exchange. By transferring crypto assets to the exchange’s wallets, the user ceases to own them — these coins already belong to the exchange. The wallet may be frozen, the assets may be embezzled, or it can be hacked.

Decentralized EX

Decentralized exchanges are platforms that allow users to trade with each other directly, i.e., without intermediaries.
The main point is that DEXs don’t have centralized authority that could block the account or withdraw the user’s funds. But at the same time, no one except the user is responsible for their safety: if the user suddenly loses access to the wallet, then no one can help them.

Pros:

Secureness
Users store cryptocurrencies in their own wallets, not on exchange wallets, and this reduces the likelihood of losing funds in the event of a hack.

Cons:

Limited functionality
Services such as margin trading and complex orders (take profit, stop loss) are usually unavailable.

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