Here are the key differences between centralized exchanges (CEXs) and decentralized exchanges (DEXs):
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Centralization - CEXs are controlled by a single entity while DEXs operate on decentralized blockchain networks.
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Custody - On CEXs, users do not have direct control of their private keys/funds. DEXs give users full control of their keys and funds.
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Know Your Customer (KYC) - CEXs require identity verification and KYC. DEXs typically do not require KYC.
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Trading Fees - CEX fees are set by the platform. DEX fees can be low but there are gas fees on Ethereum.
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Trading Options - CEXs offer more trading pairs and options. DEXs have fewer pairs but allow new token listings faster.
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Speed - CEXs can process trades faster. DEX trade speed depends on blockchain congestion.
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Security - Funds have been hacked from CEXs. DEX funds are inherently more secure due to blockchain.
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Regulations - CEXs must comply with financial regulations. DEXs are largely unregulated so far.
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Liquidity - CEXs generally have higher trading liquidity. DEX liquidity depends on each platform.
So in summary, CEXs offer convenience but DEXs offer more decentralization, security and user control over funds. Each have trade-offs.