DeFi & Yield

What is the difference between a DEX and a CEX?

A DEX (decentralized exchange) lets users trade crypto directly from self-custody wallets through smart contracts, while a CEX (centralized exchange) is a company that holds your funds and matches trades on its own order book. The core distinction is custody and control: on a DEX you keep your private keys and interact with code, whereas on a CEX you trust the operator to hold assets and process trades. For example, swapping tokens on Uniswap is a DEX trade; buying on a centralized platform that custodies your balance is a CEX trade. Each carries different operational and counterparty considerations.