How Do Centralized Exchanges (CEX) Differ from DEXs?
CEXs are operated by a single company, use traditional order books, and require users to deposit funds (custodial). DEXs are decentralized, use smart contracts (often AMMs), and allow users to trade directly from their private wallets (non-custodial).
CEXs offer higher speed and liquidity, while DEXs offer greater security and trustlessness.
Glossar
DEXs
Exchange ⎊ Decentralized exchanges (DEXs) represent a paradigm shift in cryptocurrency trading, facilitating peer-to-peer transactions without reliance on centralized intermediaries.
Security
Framework ⎊ Within cryptocurrency, options trading, and financial derivatives, security transcends the conventional notion of asset protection, evolving into a foundational framework for trust and operational integrity within decentralized ecosystems.
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
Private Wallets
Custody ⎊ Private wallets are digital storage mechanisms that grant the user exclusive control over their cryptocurrency and digital assets through possession of the private key.
Centralized Exchanges
Exchange ⎊ Centralized exchanges (CEXs) represent a critical infrastructure within cryptocurrency markets, facilitating order matching and settlement for a diverse range of digital assets, including options and derivatives.