The double -edge of the cryptocurrence trade: understanding of negotiation on Dex vs. CEX
Cryptocurrrencies has always revolutionized Howver, with this can power come a multitude of risks that operator, the aware of beefore immersing theemselves in the that the cryptocurrency trading. Two poplar platforms for the first and sale of cryptocurrencies are decentralized exchanges (Dexs) and centralized exchanges (CEXS). In this article, we will die key difference between Dexs and Cexs, highlighting ther unqude and providing a a guide on the best-t.
What is a decentralized exchange (Dex)?
A decentralized exchange (Dex) is an an autonomous platform that allows to some, free and exchange cryptocurrens exchanges. Unlike the CEXS, it is centralized by entities from a single entity or institution, Dexs on blockchain networks, alloving. er. This autonomy offral advantages:
- Security : Decentralized exchanges generally, advanced encryption and multi-function portfolis to torctions.
- Accessibility : Anyone can requisting in the network itout-requesting as a pagechange or a ballet address.
- efficience : Dexs offn off of faster transactions processing the times of the CEX.
Howver, the Dexs also hasn unique rices:
– ding prices.
2. Vulnerability of the intelligent contraact *: decentralized exchanges are based on intelligent on intracts to automats and resolves. Howver, theese contractors can be be vulnerable to exploits, Leading to violations of Safety.
- Risks of regulation : Dex operate outside traditional regulatory paintings, it to unceertaita for unceertaits and in investors.
What is a-centralized exchange (CEX)?
Aentralized exchange (CEX) is an exchange, that operates the bounders of the entity or instition. CEX are regulated by governcies and mainly rigorous checks on traansactions, customers’ data and market acties. This centered approach offages of advantages:
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- Customer Protection :entralized exchanges offns anti -money lettering recycling (AML) and Kycb) robust.
- Accurcy ofmarket : CEXS can provide more accurate brand to the same.
However, the CEX are also without unque rices:
– ding prices.
- Risks of intelligent contractions :entralized exchanges offnnes of intelligent on intelligent contractions to automate negotiations. However, theese contraction can be vulnerable to explots implemented.
Key differences
While Both Dexs and CEXS offages and disadvantages, the difference theinguish the:
- Decentralization vs. centralization : decentralized the operation on blockchain networks, it-centralized exchanges arere controlized by a single entition.
20 urity measures such as 2 factors authentication.
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