CEX vs DEX
CEX and DEX are easy to mix up. Here are both definitions from the HighRisk Media glossary side by side.
Comparison table
| Term | CEX | DEX |
|---|---|---|
| Full name | Centralized Exchange | Decentralized Exchange |
| In short | A CEX (centralized crypto exchange) is an intermediary company that holds clients' funds and matches buy and sell orders for crypto assets in its own order book. | A DEX (decentralized exchange) is a platform for trading crypto assets directly between users via blockchain smart contracts, without an intermediary that holds funds. |
| Verticals | Crypto | Crypto |
What is CEX?
A CEX onboards users through registration and identity verification, then keeps internal balance records. Trades happen inside the exchange's system: orders are matched in the order book, and no actual transfer of coins between participants' wallets takes place until the user withdraws funds.
What is DEX?
A DEX is a decentralized exchange where token swaps are executed by smart contracts on a blockchain. Users connect their own wallets, and assets are not transferred to an operator for custody, as happens on a centralized exchange (CEX).