Introduction: Two Paths of the Exchange
When entering the cryptocurrency world, you will definitely face this choice - whether to use a centralized exchange (CEX) or a decentralized exchange (DEX)?
In simple terms, CEX is the traditional financial model, while DEX is the blockchain model. The former is operated by companies, while the latter is operated by code. But what are the essential differences between these two methods? How should one choose? Today, I will clarify this for you.
Why are exchanges divided into two types?
To understand this issue, one must first clarify their operational logic.
The core of a CEX is the order book. A single entity (the exchange company) maintains a "trading ledger" that records all buy and sell orders. The system automatically matches buyers and sellers, and after a transaction is completed, the exchange charges a fee. This model is quite familiar, as the stock market operates in this way.
To use CEX, you need to register an account first, verify your identity (in compliance with local regulatory requirements), and then deposit your assets in