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How Does a Decentralized Exchange (DEX) Differ from a Centralized Exchange (CEX)?

CEXs are centralized intermediaries that custody user funds, while DEXs allow direct wallet-to-wallet trading via smart contracts, maintaining self-custody.
Greeks.Live09.11.25

How Does a Decentralized Exchange (DEX) Differ from a Centralized Exchange (CEX)?

A Centralized Exchange (CEX) is operated by a single company that holds user funds in custody, acting as an intermediary. A Decentralized Exchange (DEX) allows users to trade directly from their own wallets using smart contracts, eliminating the need for an intermediary and giving users self-custody of their funds.

DEXs typically offer less regulatory oversight but greater censorship resistance than CEXs.

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