Degen

CEX (Centralized Exchange) and DEX (Decentralized Exchange) are two types of cryptocurrency exchanges:

CEX (Centralized Exchange)

1. Controlled by a central authority or company.
2. Users deposit funds, and the exchange holds them.
3. Trading occurs on the exchange's platform.
4. Verification and KYC (Know-Your-Customer) required.
5. Withdrawals processed by the exchange.

Pros:

1. User-friendly interface
2. Faster transaction processing
3. Higher liquidity
4. Better customer support

Cons:

1. Central point of failure (security risk)
2. Custodial risk (exchange controls funds)
3. Regulatory risks
4. Fees for deposits, withdrawals, and trading

Examples: Binance, Coinbase, Kraken

To be continued;

I am called Algebra. I love to explore wide range of things from science to cryptocurrency.