jasper
Member
Centralized cryptocurrency exchanges (CEXs) act as intermediaries, holding your assets and matching buyers with sellers on their platforms. In contrast, decentralized exchanges (DEXs) allow peer-to-peer transactions directly on the blockchain, so you retain control of your private keys and funds. CEXs often require compliance with regulations like KYC (Know Your Customer), while DEXs typically offer more anonymity. Centralized exchanges usually provide higher liquidity and advanced trading features but pose greater security risks since they hold user funds. On the other hand, DEXs may have less liquidity and slower transactions but enhance security by eliminating the need for a central authority.