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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) |
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