Trading Notes | Centralized and Decentralized Exchanges
① Many DEXs don’t use order books. Instead, they use liquidity pools and automated market-making algorithms to quote prices, such as Uniswap on Ethereum.
② On a CEX, on-chain transactions usually occur only when depositing or withdrawing funds. Trades within the platform simply update balances in the platform’s ledger.
③ For convenient deposits, withdrawals, and customer support, a CEX is easier to use. If you want to control your own private keys and use on-chain apps, you’ll need to be familiar with wallet security.
$BNB 749.25 (+1.07%)
① Many DEXs don’t use order books. Instead, they use liquidity pools and automated market-making algorithms to quote prices, such as Uniswap on Ethereum.
② On a CEX, on-chain transactions usually occur only when depositing or withdrawing funds. Trades within the platform simply update balances in the platform’s ledger.
③ For convenient deposits, withdrawals, and customer support, a CEX is easier to use. If you want to control your own private keys and use on-chain apps, you’ll need to be familiar with wallet security.
$BNB 749.25 (+1.07%)