CEX vs DEX, what is the difference?

CEX vs DEX is the choice between a centralized exchange run by a company and a decentralized exchange run by code on a blockchain. On a CEX you deposit money into an account the company controls. On a DEX you connect your own wallet and swap tokens directly, without handing your funds to anyone.

What is the difference between a centralized exchange and a decentralized exchange?

Ethereum.org explains that a centralized exchange holds custody of your crypto until you move it to a wallet you control. In exchange, it lets you buy with regular currency, though many can only serve the regions where they operate. A DEX lets you trade without giving control of your funds to a company.

That trade-off runs through everything else. A CEX can reset a password, help with a mistake or freeze an account. A DEX cannot do any of those. The basics of each are in what is a crypto exchange and what is a DEX, and the wider custody debate is in DeFi vs CeFi.

How do CEX vs DEX fees compare?

On a CEX the company sets the fees. Coinbase says simple buy and sell orders include a spread built into the price, plus a Coinbase fee that depends on payment method, order size and market conditions, all shown before you confirm. Its Advanced platform has no spread. Kraken says its trading fees range from a 0.02% maker rebate to a 0.80% taker fee, depending on 30-day volume, the pair and order type. Maker orders add to the order book, while taker orders fill against it.

On a DEX such as Uniswap, each pool has a fee tier. Uniswap's v3 tiers are 1%, 0.3%, 0.05% and 0.01%, and v2 uses a single 0.3% tier. Liquidity providers receive that fee, and on some pools a portion goes to a protocol fee. Each swap also pays a network fee to the blockchain. An app or wallet interface may add its own charge on top.

What are some CEX vs DEX examples?

Coinbase, Kraken and Binance are centralized exchanges. Uniswap is a widely used DEX on Ethereum and other networks, and similar DEXs run on most blockchains with smart contracts. Some products now blend the two. Coinbase offers a Trade on DEX feature in its app that runs trades from a separate dapp wallet, needs ETH for gas and adds a Coinbase transaction fee, as of November 2026.

Do you need a wallet for a CEX or a DEX?

For a CEX, no separate wallet is needed. The exchange keeps a balance for you, which is convenient but means trusting the company. You can still withdraw to your own wallet later.

For a DEX, a self-custody wallet is required, along with crypto already in it to trade and to pay network fees. Ethereum.org warns that self-custody puts security on you, and if you lose access, you lose the funds. How the two wallet types differ is covered in custodial vs non-custodial wallets.