What is a CEX and how does it work in the world of cryptocurrency?

3 answers

• Dec 29, 2021 · 3 years ago
  A CEX, short for Centralized Exchange, is a platform where users can trade cryptocurrencies. It works by allowing users to deposit their funds into the exchange's wallet, and then they can buy or sell different cryptocurrencies using those funds. The exchange acts as an intermediary, matching buyers and sellers and facilitating the transactions. It provides a user-friendly interface, order books, and liquidity to ensure smooth trading. Some popular CEXs include Binance, Coinbase, and Kraken.
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• Dec 29, 2021 · 3 years ago
  A CEX is like a digital marketplace where you can buy and sell cryptocurrencies. It's kind of like a stock exchange, but for digital assets. You can think of it as a centralized platform that connects buyers and sellers. When you want to buy a cryptocurrency, you place an order on the exchange, and if there's a seller who's willing to sell at that price, the trade is executed. The exchange takes a small fee for facilitating the transaction. It's important to note that CEXs are controlled by a central authority, which means they have custody of your funds. So, it's crucial to choose a reputable and secure exchange.
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• Dec 29, 2021 · 3 years ago
  BYDFi is a decentralized exchange (DEX) that operates on the Ethereum blockchain. Unlike CEXs, which are centralized and have control over users' funds, BYDFi allows users to trade directly from their wallets, without the need for a middleman. This means that users have full control and ownership of their funds throughout the trading process. BYDFi utilizes smart contracts to execute trades, ensuring transparency and security. It's a popular choice for those who value privacy and decentralization in their cryptocurrency trading experience.
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