Battle for decentralized replacement supremacy: Dex vs Cex
In the world of cryptocurrency, two popular terms have appeared that describe the way users interact with exchanges: Dex (decentralized exchange) and CEX (centralized exchange). While both types of exchanges are used to buy, sell and exchange cryptocurrencies, they differ significantly in terms of architecture, benefits and use cases.
In this article, we deepen the differences between Dex and Cex, examining which of them best suits your needs and what should be taken into consideration before choosing a commercial platform.
What are Dex and CEX?
- Decentralized exchanges operate in the field of blockchain technology and use intelligent contracts to facilitate transactions.
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Key differences between Dex and Cex
Here are the main differences between Dex and Cex:
* Decentralization VS Centralization : The most obvious difference is that decentralized exchanges are completely decentralized, but are not controlled by a single existence. However, the central authority that manages the platform has central exchanges.
* Transaction commissions : Dex often has lower transaction commissions than CEX due to their use of intelligent contracts and peer-to-peer trade.
* User interface
: Dex platforms usually offer more friendly interfaces, with functions such as simple purchase/sale buttons and easy navigation. Centralized exchanges can be overwhelmed for new users, with a complex menu and technical jargon.
* Security : while both types of escort exchanges have their gaps, decentralized exchanges are generally considered safer due to the lack of a central failure point. However, centralized exchanges can still be sensitive if they are not adequately fixed.
When to use dex:
- Novices : if you are new for commercial cryptocurrencies, Dex offers an easier learning curve and more friendly interfaces.
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- Small scale trading : In the case of commercial needs on a reduced scale, decentralized exchanges can be a profitable option.
When to use CEX:
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- Large trading : If you need to replace large quantities of cryptocurrencies or you need advanced commercial functions, centralized bags could be better.
Application
To summarize, the choice between Dex and Cex depends on your individual needs and preferences. While decentralized bags offer greater safety, flexibility and lower transactions, the centralized bags are more suitable for expert traders that require control over accounts and commercial needs of a large number. If you are new to exchange cryptocurrencies or you need a friendly interface, Dex can be a better choice. However, if you are a professional seller or you need advanced functions, CEX is probably the best solution.
Advice:
- Novizi: Start with Dex as Uniswap or Sushiswap.
- Tall Trader: USA DEX with a large volume, such as Binance or Huobi.
- Professional traders: take into consideration the use of a centralized exchange, such as coinbase or Gemini, in terms of advanced functions and safety.
