Centralized exchanges (CEX) operate similar to banks. They are owned, safe, and regulated. Typically, CEX rely on a private infrastructure to match supply and demand, which is managed internally in their own servers. On th other hand, Decentralized exchanges (DEXs) bring buyers and sellers together. Most are permissionless, meaning that anyone can access them and trade without intermediaries. Transactions are carried out with open smart contracts. Without third-party involvement, users maintain full control over their cryptocurrencies throughout the trading process.

Unlike centralized exchanges, DEXs are fully transparent. Volumes on DEX cannot be faked, and the technology powering DEX smart contracts is open source and auditable by anyone.