DEX vs CEX

Yaser Rahmati | یاسر رحمتی

Here’s a detailed table comparing Decentralized Exchanges (DEX) and Centralized Exchanges (CEX) based on 30 Key Performance Indicators (KPIs):

KPI

DEX

CEX

Control of Funds

Users retain full control of funds.

Funds controlled by the exchange (custodial).

Security

High; no central point of failure.

Moderate; vulnerable to hacking due to centralization.

Regulation

Often unregulated or lightly regulated.

Heavily regulated in most jurisdictions.

Transparency

Fully transparent; transactions visible on the blockchain.

Limited; depends on the platform's policies.

Ease of Use

Moderate; requires knowledge of wallets and keys.

High; user-friendly interfaces and support.

Liquidity

Lower; depends on user activity and AMM algorithms.

Higher; due to centralized order books and market makers.

Speed of Transactions

Slower; depends on blockchain network speed.

Faster; controlled by centralized systems.

Privacy

High; no KYC/AML required in most cases.

Low; requires KYC/AML compliance.

Trading Fees

Often lower; fees depend on blockchain network.

Higher; charged per trade, withdrawal, and deposits.

Asset Availability

Wide range; supports long-tail assets.

Limited; prioritizes popular and regulated assets.

Order Types

Limited; typically basic (swap, market orders).

Advanced; market, limit, stop-loss, margin trading, etc.

Interoperability

High; supports cross-chain trades via bridges.

Limited; trades occur within the platform.

Smart Contract Risks

Present; relies on the security of smart contracts.

Absent; no dependency on smart contracts.

Customer Support

None or limited; community-driven assistance.

Comprehensive; dedicated support teams available.

Ownership

User-owned; no intermediaries.

Platform-owned; operates on centralized authority.

Reliability

Dependent on blockchain uptime.

High; relies on platform infrastructure.

Accessibility

Global access without restrictions.

Region-restricted based on regulations.

Trading Pairs

Flexible; allows any pair supported by smart contracts.

Limited; depends on listed pairs.

Market Making

Algorithmic via AMM or liquidity pools.

Centralized by professional market makers.

Leverage/Derivatives

Rare; limited options.

Common; provides high leverage and various derivatives.

Governance

Community-driven; often uses governance tokens.

Centralized; managed by the company.

Innovation

Fast-paced; supports DeFi, NFTs, and new protocols.

Slow; prioritizes stability over innovation.

Risk of Downtime

Minimal; operates 24/7 without intermediaries.

Present; subject to maintenance and server issues.

Compliance Costs

Low; avoids regulatory costs.

High; adheres to strict legal frameworks.

Fraud Risk

Lower; no centralized authority to scam users.

Higher; risk of exchange insolvency or fraud.

Revenue Model

Fees from liquidity providers and traders.

Fees from trading, withdrawals, and deposits.

Trust Requirement

Trustless; relies on code and blockchain.

Requires trust in the platform and its operators.

Community Involvement

High; governed by token holders.

Low; users have minimal input in decision-making.

Scalability

Limited by blockchain technology.

High; centralized architecture allows for scaling.

Keywords

Liquidity, نقدینگی, Security, امنیت, Transparency, شفافیت, Decentralization, غیرمتمرکز, Regulation, قانون‌گذاری, Custody, امانت‌داری, Trading Fees, کارمزد معاملات, KYC, احراز هویت, Smart Contracts, قراردادهای هوشمند, Interoperability, قابلیت همکاری, Asset Availability, دسترسی به دارایی‌ها, User Control, کنترل کاربران, Order Types, انواع سفارش, Privacy, حریم خصوصی, Speed, سرعت, Governance, حاکمیت, Customer Support, پشتیبانی مشتری, Leverage, اهرم, Derivatives, مشتقات, Market Making, بازارسازی, Trading Pairs, جفت‌ارزها, Blockchain, بلاکچین, Reliability, قابلیت اطمینان, Compliance, انطباق, Innovation, نوآوری, Scalability, مقیاس‌پذیری, Fraud Risk, ریسک تقلب, Accessibility, دسترسی, Revenue Model, مدل درآمدی, Trust, اعتماد, Community Involvement, مشارکت جامعه

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