A centralized exchange (CEX) offers cryptocurrency exchange services to registered users. Its primary service typically matches buyers and sellers with an order book, though a CEX may offer its verified users various crypto products. For beginners, a CEX provides the simplest way to get started without needing in-depth knowledge of blockchain infrastructure and tools.

A decentralized exchange (DEX) uses on-chain smart contracts to run its exchange services. In most cases, will swap tokens from liquidity pools, with liquidity provided by other users in exchange for swap fees.

You don't need to register for a DEX, meaning they're open to anyone with a wallet and some crypto. DEXs are the gateway to the decentralized finance (DeFi) world and provide users with a lot of freedom. However, they lack the support a CEX can give, and it can be easy to make irreversible mistakes when using them.

Why Are There Different Types of Exchanges?
If you're a new trader or only have experience in traditional finance, the difference between a CEX and DEX can be confusing. A CEX works similarly to what you'd find in the world of stocks — a single entity operates using an order book in which market makers and takers place orders. The order book then matches buyers with sellers, taking a small cut of the transaction as a fee.

At the heart of the operation are the order book and exchange entity, making the model centralized. To use a CEX like Binance, you must create an account and verify your identity according to local regulations. The exchange will also take custody of the assets you want to trade on the CEX after you’ve deposited them into your CEX account.


Source - https://academy.binance.com/en/articles/what-s-the-difference-between-a-cex-and-a-dex?utm_source=BinanceAcademy&utm_medium=Social&utm_campaign=Article

$Qtoken #Qoneqt #Oboswap #QTO #DEX #CEX #Decentralization #Liquidity #YieldFarming #Staking #trading #Ethereum #dApps #Binance #Polygon #cryptocurrency #CryptocurrencyNews #Bitcoin