How Do 'Decentralized Exchanges' (DEXs) Differ from 'Centralized Exchanges' (CEXs)? ⎊ Path

How Do ‘Decentralized Exchanges’ (DEXs) Differ from ‘Centralized Exchanges’ (CEXs)?

CEXs are operated by a central company that holds users' funds in custody and manages the order book. DEXs, conversely, are peer-to-peer trading platforms that operate via smart contracts on a blockchain, allowing users to retain custody of their funds (non-custodial).

DEXs often use Automated Market Makers (AMMs) instead of traditional order books.

What Is the Role of Decentralized Exchanges (DEXs) in Derivatives Trading?

How Do Decentralized Exchanges (DEXs) Utilize Smart Contracts to Bypass Traditional Brokers?

Do Decentralized Exchanges (DEXs) Handle Liquidations Differently than Centralized Exchanges (CEXs)?

How Can Decentralized Exchanges (DEXs) Impact Altcoin Liquidity Compared to Centralized Exchanges (CEXs)?

How Are Smart Contracts Used to Create Decentralized Exchanges (DEXs) for Cryptocurrency Trading?

How Do Decentralized Exchanges (DEXs) Handle Bid-Offer Spreads Differently than Centralized Exchanges (CEXs)?

How Does a Decentralized Exchange (DEX) Reduce Counterparty Risk Compared to a CEX?

How Do Decentralized Finance (DeFi) Platforms Offer Derivative Products?

Glossar

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.

Automated Market Makers

SystemArchitecture ⎊ Automated Market Makers represent decentralized trading protocols that utilize algorithmic functions, rather than traditional bid-ask order books, to facilitate peer-to-contract asset exchange.