You are at the beginning of your trading journey, and there’s a major question to be solved. What type of exchange service to choose? There are two major types of crypto exchanges people can benefit from. First of all, it’s worth mentioning that trading online or managing any other cryptocurrency activity is impossible without the exchange platform. This is the reason why the choice of the service is such a painstaking issue.
In the market, there are DeX and CeX platforms. What are these, and how to place the final choice? CeX is a centralized exchange, while DeX is a decentralized platform for crypto exchange.
Nevertheless, both are used widely by the market players; there are critical differences between these tools that can affect not only the process but the results of your trading activity. Let’s get down to the details and see how you can choose the tool that fits your needs and goals the most.
CeX Explanation and Principle of Work
Let’s start with the centralized exchange platform or CeX, which is usually widely popular among beginner users. When we talk about the CeX, it means the exchange is subject to a certain central institution that takes profit from the transaction or service fees. CeX is a highly popular tool for beginner traders who mind their money because such an exchange platform may even offer deposits and claim to protect funds online.
However, you won’t benefit from the top anonymity when working with CeX. Since your transactions are a part of the bigger process, third-party intermediaries are involved, too. For this reason, the use of the CeX platform might present certain security or personal anonymity risks.
DeX Explanation and Principle of Work
One of the best options for experienced traders as well as for beginner players is to try a DeX platform. This is a place where you can exchange GAS to NEO and perform different transactions without being revealed or identified. The main perk to using a decentralized platform DeX is non-intermediary work with your funds.
Decentralized DeX services also offer token availability, while CeX has to verify the coins and introduce them after certain technical procedures are done. This is a more convenient way to trade online with more DeX opportunities in the market and better security for your personal funds, as well as for your anonymity online.
You won’t pay more to cover the fees of the CeX intermediary, as happens with centralized platforms. And it’s also more convenient to use DeX for their fast and smooth entry process. No emails or registration procedures are needed to start trading with the help of the DeX platform.
Main CeX vs DeX Differences
Before you check out the https://letsexchange.io/ service or decide where to store your funds, there has to be a comparison of whether CeX is better than DeX or vice versa. In terms of anonymity, DeX wins the race because the platform doesn’t reveal the data of the traders. Furthermore, no registration data-reveal procedures are needed.
When discussing the convenience aspect, DeX is also more compatible in this case. You don’t need to manage a lot of processes or tasks to start your journey in the market. However, there is one thing that DeX can’t have the alternative. CeX offers necessary support to beginners. You can find various assistive options, such as deposits and funds protection. CeX is used widely by traders who need more assurance during the trading courses, and this is what might be a huge advantage when compared to DeX.