Knowledge Notes | Centralized and Decentralized Exchanges
① Every swap on a DEX is an on-chain transaction, so you have to pay the gas fee for that blockchain.
② On a centralized exchange (CEX), the platform holds users’ assets and matches buy and sell orders on its own order book, so not every transaction goes on-chain.
③ If you want convenient deposits and withdrawals and customer support, a CEX is easier to use. If you want to manage your own private keys and use on-chain apps, you’ll need to be familiar with wallet security.
$BNB 674.88 (-0.74%)
① Every swap on a DEX is an on-chain transaction, so you have to pay the gas fee for that blockchain.
② On a centralized exchange (CEX), the platform holds users’ assets and matches buy and sell orders on its own order book, so not every transaction goes on-chain.
③ If you want convenient deposits and withdrawals and customer support, a CEX is easier to use. If you want to manage your own private keys and use on-chain apps, you’ll need to be familiar with wallet security.
$BNB 674.88 (-0.74%)