29 May 2022

There has been a debate as to which is better, a DEX or CEX.  I won't actually decide that for you, will only tell you what you should know about either of them.

What is a CEX?

CEX is an acronym for Centralized Exchanges. CEX is a type of decentralised exchange that makes use of order books to execute trades for its users. This order book is a collection of buy and sell orders executed by traders. 
CEX has a way that automatically matches buy and sell orders to satisfy the user's needs. 

CEXes are being handled by an organization, which implies that they take responsibility for all funds on their exchange, this could be risky being that they become a major target for hackers and the like. In the past, we have seen how CEXes got hacked, and funds got missing.

One of the many advantages of trading on CEX is the elimination of the miner's fee(gas fee), which can be favourable to traders who trade on blockchains such as ethereum, where the gas fee is alarming. 

Well, CEXes still got their pro and cons, and it still plays a major role in the crypto space.

What is a DEX?

DEX is an acronym for Decentralized Exchange. DEXes eliminate the need for a 3rd party and just focuses on peer to peer trading. 

DEXes are made up of Smart Contracts which are responsible for the interaction between traders and the DEX itself.

There are a lot of benefits that come with using a DEX, such as Retroactive airdrops, earning from gas fees, etc

Also, Using a DEX retains the anonymity of a trader. And traders are responsible for their funds and assets.


With these, the importance of both CEX and DEX can't be overemphasized, both got their Pros and Cons, Just choose the one that best suits you.
Are you a risk-taker or do you prefer others to manage your risk? That is definitely left for you to decide.

Write & Read to Earn with BULB

Learn More

Enjoy this blog? Subscribe to Sami♧


No comments yet.
Most relevant comments are displayed, so some may have been filtered out.