Post #35

🤓What is a DEX? Differences between DEXs and CEXs Today, we will delve into one of the key topics in Web3 and determine which trading platforms are better to use. DEX (decentralized exchange) – platforms for cryptocurrency exchange that operate on blockchains and do not require the involvement of a third party to conduct transactions. CEXs (centralized exchanges) were discussed in this post Examples of DEXs: – STON.fi, DeDust(on the TON blockchain) – Uniswap, SushiSwap (on Ethereum, BSC, and others) Differences between DEXs and CEXs: 1. Centralization vs. decentralization – CEX: Controlled by a single organization that oversees all operations and holds users’ funds. – DEX: Operates based on smart contracts that automatically execute operations without intermediaries. 2. Privacy and anonymity – CEX: Require Know Your Customer (KYC) procedures (identity verification). – DEX: Typically, does not require KYC, allowing for anonymity. 3. Asset control – CEX: Users entrust their funds to the exchange, which is risky. There have been cases of hacks and bankruptcies—e.g., the former major exchange FTX. – DEX: Users hold funds in their own wallets, trade directly, and maintain full control. 4. Fees and speed – CEX: Lower fees and high transaction speeds due to centralized infrastructure. – DEX: Fees are usually higher (depending on the blockchain); transaction speed depends on network capacity. 5. Tokens – CEX: Strict listing procedures limit the tokens available for trading. – DEX: Ability to trade any tokens available on the blockchain. Conclusions DEXs provide more freedom and asset control, reducing the risks associated with centralized structures; however, they have their drawbacks: high fees and sometimes slower transaction speeds. It all depends on your needs and preferences. We recommend combining DEX and CEX platforms. #intern | Not Guide