CEX and DEX: What are the differences?

Centralized Exchanges (CEX):

Characteristics

  • There will be a third party operator
  • Transactions in fiat currency will be allowed
  • The entries will be in the database most of the time until the withdrawal or extraction of coins occurs
  • Better trading speed (no real-time crypto node update)
  • Liquidity will be more noticeable on the exchange
  • Uso de Know Your Customer (KYC) y Anti-Money Laundering (AML)
  • Prone to hacking the system

Decentralized Exchanges (DEX):

Characteristics

  1. Transactions in fiat currency will not be allowed
  2. Most of the time, Market Takers will only be part of the platform
  3. The crypto trading transaction volume will be very less.
  4. Low-grade trading speed (due to real-time crypto node update)
  5. Liquidity will be the challenge (only handle Crypto Coins on Nodes)
  6. No, prácticas de Know Your Customer (KYC) y Anti-Money Laundering (AML)
  7. No private keys in the app

Security :

Regulatory needs:

  • Control of funds
  • Anonymity
  • Authentication
  • Benefits of a decentralized exchange
  • faster transactions
  • Less vulnerable to hacking risk

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