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DeFi
What's the difference between a DEX and a CEX?
Direct answer
A DEX (decentralized exchange) runs on smart contracts; users keep custody of their funds and trade peer-to-contract (e. g.
Details
.g. Uniswap). A CEX (centralized exchange) holds user funds and runs an off-chain order book and matching engine (e.g. Binance). DEXs reduce custody/compliance overhead but require flawless contracts.
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