CEX vs. DEX — here are the differences

TheLuWizz
Coinmonks

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Decentralized Exchanges (DEX) have gained popularity not only since the hype of decentralized financial products (DeFi). But the rush to the decentralized exchange Uniswap reignited the debate about the pros and cons of decentralized and centralized exchanges (CEX). Many crypto enthusiasts believe that the market share of decentralized exchanges could increase significantly in the future. And many of the established crypto exchanges are also currently working on a decentralized version of their trading venues. Reason enough to take a look at the characteristics of the different types of exchanges. Will crypto trading really become fully decentralized in the future?

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History of cryptocurrency exchange trading

Before we shed light on the technical differences of CEX vs. DEX, let’s take a look back into the past. In fact, digital currency and token trading as we know it today is only a few years old. A lot has happened since the “genesis block” of bitcoin (BTC) was mined in early 2009, and Satoshi Nakamoto sent the first-ever transaction to Hal Finney. In 2009, the New Liberty Standard set the price of 1 BTC for the first time as a central authority. A year later, the first Bitcoin exchange, Mt.Gox, opened its doors. In 2014, Mt.Gox’s work ended in one of the most serious thefts in crypto history to date. Hackers captured 744,000 BTC, and the exchange went bankrupt.

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TheLuWizz
Coinmonks

Yoga-inspired Crypto Nomad. Balancing #Bitcoin and asanas. Join me for a joyride through #crypto, #yoga, and the digital nomad life. Good vibes only! 💡🧘‍♂️💰