How does CEX in crypto differ from DEX?

3 answers

• Jan 14, 2022 · 3 years ago
  CEX and DEX differ in their approach to custody. CEXs hold users' funds on their platform, acting as a trusted third party. On the other hand, DEXs enable users to trade directly from their wallets, eliminating the need to trust a centralized entity. This gives users more control over their funds and reduces the risk of hacks or thefts associated with CEXs.
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• Jan 14, 2022 · 3 years ago
  One key difference is the level of privacy. CEXs often require users to complete KYC (Know Your Customer) procedures, which involve providing personal information. DEXs, on the other hand, allow users to trade anonymously, without the need for KYC. This appeals to users who value privacy and want to maintain their anonymity while trading cryptocurrencies.
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• Jan 14, 2022 · 3 years ago
  BYDFi, a popular decentralized exchange, offers a unique feature that sets it apart from other DEXs. It utilizes a hybrid model, combining the benefits of both CEXs and DEXs. BYDFi provides a user-friendly interface and fast trade execution like CEXs, while still allowing users to retain control over their funds like DEXs. This makes it an attractive option for traders who want the best of both worlds.
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