Lifestyle

The Difference Between Centralised and Decentralised Cryptocurrency Trading Exchanges

High volatility of cryptocurrencies open a lot of earning opportunities for traders and investors, who buy crypto and sell it at different prices. They apply various methods that imply buying and selling assets with different frequencies. That are intraday trading, scalping, swing trading, position, and arbitrage. The processes of buying and selling assets take place on crypto exchanges.

A crypto exchange platform is a website where all operations with digital assets take place. Such services can be of the following types:

  • Centralised
  • Decentralised.

What is CEX?

CEX is a centralized crypto exchange with the following characteristics:

  • Such platforms operate officially. They have registration and comply with regulations.
  • Such exchanges allow users to buy digital assets with fiat money and offer fiat-crypto pairs.
  • In the process of crypto transactions, funds are stored on an exchange’s servers.
  • CEX ensures client safety and offer several layers of account protection.
  • CEX offers a large selection of trading tools and allows using leverage (borrowed funds) in trading.
  • Such platforms offer a wide range of trading pairs.
  • The opportunity to withdraw and deposit an account with cash.

Examples of centralized crypto platforms are Binance, WhiteBIT, Coinbase, and Huobi.

What is DEX?

Decentralized exchanges are different from CEX. First, DEX does not hold users’ assets on its servers – funds move between users’ wallets. So DEX is not responsible for clients’ safety and does not provide it. The next difference is the availability of trading tools. DEX cannot offer such advanced financial instruments as futures, margins, etc.

DEX are suitable for small amount trades. They do not require user verification. Examples of DEX are SushiSwap and UniSwap.

Both types of trading platforms are used by crypto investors. It is up to you to decide what service to pi; the main is to check its reputation, fee policy, current crypto rates, and availability of trading tools.

Health2Wellness

We are nutritionist, health writer's, and food bloggers. Check it out our latest health & wellness articles on fitness, diet, and healthy living.

Share
Published by
Health2Wellness

Recent Posts

Signs Your Child May Need Therapy

Raising a child comes with its fair share of challenges, and it can sometimes be… Read More

May 15, 2025

What to Expect in Your First Therapy Session: A Beginner’s Guide

Starting therapy can be a harsh but exciting step in your mental health journey. Whether… Read More

May 10, 2025

Dental Health and Whole-Body Wellness: Why Your Smile Reflects More Than You Think

When people think about health, they often focus on nutrition, exercise, and mental well-being. But… Read More

May 7, 2025

From Gym to Street: Styling Men’s Activewear Like a Pro

Let’s be real—men’s fashion in 2025 is no longer about stiff collars and uncomfortable fabrics.… Read More

April 30, 2025

Surbiton’s Dentist Offers Professional Tips on Keeping Great Dental Health

Prevention is always preferable to treatment when it concerns your smile. Our staff of seasoned… Read More

April 29, 2025

Self-Care Secrets for Entrepreneurs Seeking Success

In the relentless pursuit of entrepreneurial success, it’s easy to overlook the most vital asset—yourself.… Read More

April 9, 2025