Skip to main content
Learn

What Is the Primary Difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX)?

CEX is custodial, uses an order book, and requires trust; DEX is non-custodial, uses smart contracts, and is trustless.
Greeks.Live19.11.25

What Is the Primary Difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX)?

A CEX is operated by a single company that holds customer funds in custody and uses a traditional order book for trading. Users must trust the exchange.

A DEX is a peer-to-peer platform built on a blockchain where users retain custody of their funds (non-custodial). Trades are executed via smart contracts, either through an order book or an Automated Market Maker (AMM).

How Does the ‘Settlement’ Process Differ between a CEX and a DEX for an Option Contract?
What Are the Risks of Using a Centralized Exchange (CEX) versus a DEX?
How Does an AMM Differ from a Centralized Exchange (CEX)?
How Does a Decentralized Exchange (DEX) Handle Slippage Compared to a Centralized Exchange (CEX)?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.