Crypto CEX Vs DEX: What Is the Difference?
Depending upon your location and desired payment process, there are numerous places to invest in crypto. In this article, we will discuss the best place to buy cryptocurrency. Here are some popular options:
- Crypto exchanges like Binance, ByBit, and WhiteBIT. Here you can purchase or sell various types of cryptos for other cryptos or even for conventional money such as USD and EUR.
- P2P. Without the need for an intermediary, peer-to-peer marketplaces, for example, LocalBitcoins and Paxful enable you to purchase and sell crypto directly with other individuals.
- ATMs: If you're looking to purchase or sell assets locally, there's no better way than using a Bitcoin ATM.
DEX And CEX
When it comes to exchanges, CEX and DEX are two distinct forms of platforms. What is CEX? CEX is an exchange controlled by an entity. This type of platform allows transferring funds and storing them until they decide it's time for trading or withdrawal. Additionally, this form of trading involves margin trade, futures contracts plus many more sophisticated functions that increase its versatility and usage on the market. On the flip side though, its centralization feature makes it prone to hacks and other malicious attacks which are constantly looming in cyberspace nowadays.
In contrast to a centralized platform, decentralized exchange functions on a decentralized network. Unlike other platforms in which individuals must deposit funds into an account held by the platform itself, users of a DEX can connect their own wallets directly and execute transactions through smart contracts - autonomous programs that enable trustless trades between entities. What's more, is that these networks can be considered heavily armored against malicious attacks due to their distributed nature.
To sum up, the CEX vs DEX primary distinction is that CEXs are centralized services as opposed to decentralized ones.
CEX WhiteBIT
WhiteBIT is a secure, user-friendly centralized exchange boasting some of the lowest fees in the market. Its two-factor authentication and encryption technologies provide clients with top-tier protection while its simple interface makes it easy to buy, sell, or trade cryptos. Plus, trading fees start at an extremely competitive 0.1%. WhiteBIT is the perfect solution for traders willing to maximize their profits. WhiteBIT provides over 350+ trading pairs, including both popular and emerging cryptos, along with high liquidity that ensures users can effortlessly buy or sell without experiencing price slippage. Moreover, advanced features like margin trading and stop-loss orders are available on WhiteBIT, providing all the resources needed to generate significant returns from investments in digital assets. In short, if you're searching for an easy-to-use yet secure platform with low fees then look no further than WhiteBIT.