The crypto world offers two primary trading platforms: centralized exchanges (CEX) and decentralized exchanges (DEX). Each comes with its unique features, benefits, and trade-offs. If you’re debating which platform suits your trading or investment goals, this article provides a concise comparison to help you decide.
A centralized exchange is a traditional trading platform where a central authority governs transactions, manages liquidity, and provides user-friendly interfaces.
Examples include Binance, Bybit, and Bitget.
Centralized exchanges (CEX) function much like traditional financial institutions, such as stock exchanges, but operate in the cryptocurrency world. They are centralized in the sense that a single organization or company manages all operations, ensuring smooth functionality, maintaining order books, and overseeing security and user transactions.
- Account Creation: Users create an account by signing up with their email or phone number. Most platforms require identity verification (KYC) to comply with regulatory requirements.
- Deposit of Funds: Users deposit funds into their…
