Results for “CEX vs DEX”

CEX

A CEX (centralized exchange) is a company that lets you buy, sell and trade crypto, often with ordinary money. While your coins sit in your exchange account, the company holds them for you; they are only in your control once you withdraw them to your own wallet.

What it means for you. Coins left on an exchange depend on that company: it can freeze withdrawals, be hacked, or fail, and a regulator warns there may be no recourse if crypto is stolen. Before depositing, check whether you can withdraw that coin to your own wallet, on which network, and what the withdrawal fee is.

Sources: ethereum.org: Get ETH (centralized and decentralized exchanges), CFTC: Understand the Risks of Virtual Currency Trading, Investor.gov (SEC): Exercise Caution with Crypto Asset Securities · checked 4 October 2026

DEX

A DEX (decentralized exchange) is an app that lets you swap one token for another directly from your own wallet, with smart contracts matching and settling the trade. No company holds your funds before or after the swap.

What it means for you. You keep custody, but you also carry every check yourself: anyone can create a token with a familiar name, so confirm the contract address before swapping. Swaps cost a network fee even when they fail, prices can move against you while the trade is pending, and a completed swap cannot be reversed.

Sources: ethereum.org: Get ETH (centralized and decentralized exchanges), ECB Macroprudential Bulletin: Decentralised finance, Uniswap docs: Swaps · checked 4 October 2026