CEX Vs DEX: Crypto Exchanges and the differences between them

There are two different kinds of cryptocurrency exchanges, CEX (Centralized Exchange) and DEX (Decentralized Exchange), and they differ significantly:

1. Centralization and Control:
- A single organization manages centralized exchanges, giving them authority over user funds and transactions.
- DEX: Peer-to-peer networks are used by decentralized exchanges, which give users more autonomy over their money and do away with the necessity for a central authority.

2. Security and privacy: CEX: single exchanges frequently keep customer assets in a single wallet, leaving them open to hacking and security lapses.
- DEX: Decentralized exchanges (DEX) make use of smart contracts and don’t keep customer funds, which can improve security and privacy.
- Trading Procedure: CEX: Because of their consolidated infrastructure and quick trading times, centralized exchanges provide a user-friendly interface.
- Due to their reliance on blockchain technology, decentralized exchanges could have a more difficult learning curve and slightly slower transaction speeds.

3. KYC and Regulation: To be in compliance with regulatory standards, centralized exchanges (CEX) frequently demand that users go through KYC (Know Your Customer) processes.
- DEX: Decentralized exchanges may not need KYC, giving customers additional anonymity.
- Liquidity: CEX: Since they…