Comparison: Centralized Vs. Decentralized Exchange


Comparison: Centralized Vs. Decentralized Exchange 1
Reference ID
2356
Listing Type
Need
List Category
Other Services
ZIPCODE
90004
Last update

Aspect

Centralized Exchange (CEX)

Decentralized Exchange (DEX)

Control of Funds

Held by the exchange

Held by users

Transaction Speed

Faster (off-chain, internal matching)

Slower (on-chain, smart contract-based)

Liquidity

Higher liquidity due to larger user base

Lower liquidity, varies between DEXs

Security

Vulnerable to hacks due to centralized control

Less vulnerable (users control assets)

Privacy

Requires KYC/AML compliance

Offers more privacy, no KYC needed

User-Friendliness

Easier for beginners, user support available

More complex, no customer support

Fees

Can be higher, often platform-based

Lower fees, but gas fees (blockchain) apply

Regulation

Heavily regulated

Less regulated, but subject to smart contract risk

Ownership of Assets

Custodial (exchange holds private keys)

Non-custodial (users hold private keys)

Flynn Rider
Los Angeles, United States

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