1:11
expert
June 13, 2022
back to overview

what is the difference between CEXs and DEXs?

The major difference between centralised exchanges (CEXs) and decentralised exchanges (DEXs) is that the former maintains control over your funds while you interact on the trading platform, whereas the latter allows you to keep control of your funds when trading through blockchain technology. CEXs normally have more liquidity available so are faster, regulated and more stable, whilst DEXs pride themselves on their blockchain security and the increased control of users, rather than one single entity. To compare and contrast the advantages and the disadvantages of CEXs and DEXs, see our longer article here.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

centralised cryptocurrency exchanges (CEXs)

A CEX is a marketplace for buying and selling digital assets like Bitcoin (BTC). A third party is employed to monitor and safeguard the transactions on behalf of the user in a CEX. These transactions are not tracked by blockchain technology. Before using the facilities given by CEXs, their users must authenticate their personal information. If the user is a company, it must submit certain corporate information as part of the verification procedure. On these exchanges, verified customers have a larger withdrawal capacity as well as additional customer help in the event of a technical issue. Because they offer flat pairings at constant rates, CEXs are quite popular among crypto aficionados. These are simple to use and adhere to all regulations for a safe and simple crypto journey for its consumers.

decentralised cryptocurrency exchanges (DEXs)

A DEX is comparable to a centralised crypto exchange in that cryptos can be bought & sold on both. However, the main difference is that it operates without the involvement of outside intervention. The funds in these exchanges are held on the blockchain and do not rely on a third party. It means that they don't rely on a bank, a firm, or any other centralised authority, instead relying on a network of people and their devices. Peer-to-peer (P2P) trading is also allowed by these exchanges that require the use of an escrow system or proxy tokens. The network is broadly distributed, each user has an equal amount of ownership.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

what is the difference between CEXs and DEXs?

The major difference between centralised exchanges (CEXs) and decentralised exchanges (DEXs) is that the former maintains control over your funds while you interact on the trading platform, whereas the latter allows you to keep control of your funds when trading through blockchain technology. CEXs normally have more liquidity available so are faster, regulated and more stable, whilst DEXs pride themselves on their blockchain security and the increased control of users, rather than one single entity. To compare and contrast the advantages and the disadvantages of CEXs and DEXs, see our longer article here.

centralised cryptocurrency exchanges (CEXs)

A CEX is a marketplace for buying and selling digital assets like Bitcoin (BTC). A third party is employed to monitor and safeguard the transactions on behalf of the user in a CEX. These transactions are not tracked by blockchain technology. Before using the facilities given by CEXs, their users must authenticate their personal information. If the user is a company, it must submit certain corporate information as part of the verification procedure. On these exchanges, verified customers have a larger withdrawal capacity as well as additional customer help in the event of a technical issue. Because they offer flat pairings at constant rates, CEXs are quite popular among crypto aficionados. These are simple to use and adhere to all regulations for a safe and simple crypto journey for its consumers.

decentralised cryptocurrency exchanges (DEXs)

A DEX is comparable to a centralised crypto exchange in that cryptos can be bought & sold on both. However, the main difference is that it operates without the involvement of outside intervention. The funds in these exchanges are held on the blockchain and do not rely on a third party. It means that they don't rely on a bank, a firm, or any other centralised authority, instead relying on a network of people and their devices. Peer-to-peer (P2P) trading is also allowed by these exchanges that require the use of an escrow system or proxy tokens. The network is broadly distributed, each user has an equal amount of ownership.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

back to overview
previous article

there are no older articles

next article

there are no new articles

novice
4:51
what is a DAO?
beginner
1:01
what is the $MXXR token?
novice
1:19
what are peer-to-peer payments?
beginner
1:02
what is the difference between total supply and circulating supply?
expert
1:12
what happens to bitcoin after all 21 million are mined?
novice
0:58
how does bitcoin work?
novice
1:12
what are gas fees?
novice
1:00
what is a smart contract?
beginner
0:49
what is dollar cost averaging?
novice
3:06
what is web3?
beginner
0:47
what is passive income?
novice
0:52
what is leverage trading?
expert
4:12
which is better, proof of work or proof of stake?
beginner
0:53
how do i read candlestick charts?
novice
4:26
what are the advantages and disadvantages of CEXs and DEXs?
beginner
0:43
what should i consider when choosing a crypto exchange and which crypto to buy?
novice
0:51
what makes a coin deflationary?
novice
4:58
what are the advantages and disadvantages of the metaverse?
beginner
0:59
what is technical analysis?
beginner
5:02
what is maxxer?
expert
0:52
what is ethereum?
novice
4:14
what is social trading?
expert
1:11
what is the difference between CEXs and DEXs?
novice
5:07
is crypto the future?
beginner
1:09
what is the difference between a bull market and a bear market?
beginner
2:48
how to start investing in crypto easy?
beginner
1:03
what is fiat currency?
beginner
0:58
what is a stablecoin?
beginner
0:54
what is the metaverse?
beginner
0:59
what is an altcoin?
expert
0:55
what is the difference between proof of work and proof of stake?
beginner
0:52
is bitcoin safe?
beginner
1:19
what is bitcoin mining?
novice
1:06
what is bitcoin?
beginner
1:25
how do i buy crypto?
novice
1:24
what is decentralisation, and why is it a good thing?
novice
0:53
what are NFTs?
beginner
1:24
why is crypto becoming bigger?
novice
1:22
what is the blockchain?
back to overview
expert
1:11
June 13, 2022
enter the beta today
Join the first community driven crypto exchange with social trading at its core.
create account
get the latest news
We compile the most exciting updates into a newsletter for you, things are moving fast, you don't want to miss out!
sign up now

stay up to date
with maxxer

subscribed
‍succesfully!

subscribed
‍succesfully!

error icon
Oops.. looks like there's something
wrong with your information.

stay up to date
with maxxer

subscribed
‍succesfully!

subscribed
‍succesfully!

error icon
Oops.. looks like there's something
wrong with your information.

stay up to date with maxxer

subscribed
succesfully!

error icon
Oops.. looks like there's something
wrong with your information.