How a CEX works
A centralized exchange operates the service infrastructure and often a custody layer. The interface is usually designed to make buying, selling and account management straightforward.
How a DEX works
A decentralized exchange uses smart contracts and a compatible wallet. Users need to understand network fees, slippage, token approvals and transaction signing.
Different responsibilities
With a CEX you consider counterparty and platform risk. With a DEX, more responsibility shifts to the wallet and smart-contract interactions. Neither model removes risk.
When each model fits
A CEX can be convenient for fiat on-ramps and routine buying. A DEX can be more natural when you need direct on-chain interaction with protocols. Costs and liquidity vary by network.
FAQ
Do DEXs require an account?
Usually you connect a compatible wallet instead of opening a traditional account with a central operator.
Are DEXs always safer?
No. Smart contracts, transaction signing, liquidity, slippage and key management introduce their own risks.
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