This is why I do edgeX [Part 3].
@edgeX_exchange @cococoX123
-----------------------------------
6. How Is Cryptocurrency Traded?
Cryptocurrency trading mainly takes place on two types of exchanges: CEX and DEX.
a. CEX (Centralized Exchange) – trading through a centralized platform operated by a company.
b. DEX (Decentralized Exchange) – trading directly on-chain from a personal wallet without intermediaries.
As of 2025, about 80% of the total cryptocurrency trading volume occurs on CEXs, while DEX usage is still in its early growth stage.
-----------------------------------
7. Characteristics of CEX
- 1. Advantages
* Easy for beginners to use.
* Fast transaction execution.
* Simple connection with real-world currencies such as KRW or USD.
- 2. Limitations
* Asset control shifts from the user to the exchange.
* The displayed balance may only reflect the exchange’s internal database, not an actual blockchain wallet.
* In cases of hacking, bankruptcy, or withdrawal suspension, users cannot immediately recover their funds.
* This leads to the well-known issue: “Not your keys, not your coins.”
-----------------------------------
8. Fundamental Questions: CEX vs DEX
- 1. What is trusted?
CEX: Central institution or operator
DEX: Code and protocol
- 2. Where are assets stored?
CEX: Held by the exchange
DEX: Held in the user’s personal wallet
- 3. How are transactions processed?
CEX: Managed by a central server
DEX: Executed via blockchain smart contracts
- 4. What is the nature of the transaction?
CEX: Accessibility, speed, and convenience
DEX: Decentralization and user control over assets
Conclusion
CEX represents a centralized, fast, and user-friendly model of cryptocurrency trading that depends on trust much like a traditional bank.
In contrast, DEX enables transactions without central control, allowing individuals to manage their own assets and fulfill the original goal of cryptocurrency.
-----------------------------------
#edgeX #Crypto #Bitcoin
-----------------------------------