How does a decentralized exchange differ from a centralized exchange when it comes to trading digital assets?

1 answers

• Mar 22, 2022 · 3 years ago
  As a representative of BYDFi, a decentralized exchange, I can tell you that the main difference between a decentralized exchange (DEX) and a centralized exchange (CEX) is the level of control and trust. In a DEX, users have full control over their funds and transactions, as they are executed directly on the blockchain. This eliminates the need to trust a central authority with your assets. On the other hand, in a CEX, users need to trust the exchange with their funds, as transactions are executed through the exchange's platform. Additionally, DEXs offer greater privacy and security, as they don't require users to provide personal information. However, CEXs usually offer higher liquidity and faster transaction speeds. Ultimately, the choice between a DEX and CEX depends on your priorities and risk tolerance.
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