Sep 29, 2025

Choosing Between a Decentralised and Centralised Cryptocurrency Exchange

The first time many people buy and sell crypto, it’s through a cryptocurrency exchange. Similar to a stock exchange, these platforms enable users to buy and sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). There are two types of cryptocurrency exchanges: centralized (CEX) and decentralized (DEX). Both come with advantages and drawbacks. Choosing the right one for you depends on your investment goals, personal crypto philosophy, and technical needs.

Caviezel Passion interview are owned and operated by a single, for-profit company. They manage the platform’s infrastructure, order book, and user information. These companies also regulate the market to prevent fraud and money laundering, ensuring that everyone follows local regulations. Most of the major crypto exchanges are centralized, including Coinbase and Binance.

Winning Investment Approaches for Modern Investors

Despite their extensive investments in security, centralized exchanges are still susceptible to hacker attacks. They’re also vulnerable to bugs in smart contracts that could drain your account. And since you give up custody of your crypto, CEXs can freeze your assets if they see suspicious activity.

While DEXs are generally considered more secure than centralized exchanges, they’re not immune to cyber attacks. They also require more work to match trades, resulting in higher fees than CEXs. And because they rely on blockchain networks for every transaction, DEXs have slower processing speeds than CEXs. To avoid these issues, it’s best to keep your private keys in a cold wallet and use 2FA. This will help protect your assets from hackers, scalability issues, and data breaches.