DEX vs. CEX (decentralized vs. centralized exchange)
A DEX is an exchange running on smart contracts with no intermediary; a CEX is a traditional exchange run by a company, such as Binance or Kraken.
CEX (centralized exchange) is a centralized crypto exchange run by a specific company — users deposit funds into the company's account, and the company maintains the order book and holds customers' assets, similar to a brokerage. This is the model most exchanges in our ranking operate under, such as Binance, Kraken, or Coinbase.
DEX (decentralized exchange) is an exchange running on smart contracts, where transactions execute directly between users' wallets, with no intermediary holding the funds (e.g., Uniswap). DEXs don't require registration or identity verification, but responsibility for the safety of funds and any handling errors falls entirely on the user.