In the world of cryptocurrencies there are two types of exchange. CEX and DEX. The graph shows the difference for each one.
What you should know about CEX:
What you should know about DEX:
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What you should know about CEX:
- Used to change fiat to crypto and crypto to fiat.
- CEXs can block your money without warning for any reason.
- The CEX may ask to verify your identity and origin of funds.
- Some cannot serve clients depending on their location.
What you should know about DEX:
- DEXs are smart contracts that exchanges run.
- To use a DEX you need to already have cryptocurrencies in possession since they do not have fiat money input.
- Most DEXs trade only with assets from the same chain where they are located. Ex Uniswap is used to exchange ERC-20 Ethereum tokens.
- DEX can be used from your software or hardware wallet.
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