🔢 Crypto Basics | Centralized and Decentralized Exchanges
· Definition: On a CEX, on-chain transfers usually occur only when depositing or withdrawing. Trades within the platform simply update the balances in its ledger.
· How to understand the difference: The most fundamental difference is who holds the assets. On a CEX, the platform holds them; on a DEX, you hold your own private keys.
· Practical tip: Price impact is usually high in lesser-known DEX pools, so check the estimated amount you’ll receive before swapping.
$BNB 744.64 (+0.62%)
#BNB
· Definition: On a CEX, on-chain transfers usually occur only when depositing or withdrawing. Trades within the platform simply update the balances in its ledger.
· How to understand the difference: The most fundamental difference is who holds the assets. On a CEX, the platform holds them; on a DEX, you hold your own private keys.
· Practical tip: Price impact is usually high in lesser-known DEX pools, so check the estimated amount you’ll receive before swapping.
$BNB 744.64 (+0.62%)
#BNB