Beginner
CEX vs DEX vs wallet apps — Check your understanding
Page 6 of 6 — Section 6 of 6
User Beginner
6/6 — CEX vs DEX vs wallet apps — Check your understanding
Key points
- Custody:Who holds keys on a CEX? On a DEX?
CEX holds them; on a DEX you hold them in your wallet. - Fees:Why might a CEX withdrawal cost more than an on-chain send?
They add a flat withdrawal fee on top of network costs. - Risk:Name one CEX risk and one DEX risk.
CEX: freeze/insolvency. DEX: signing a bad contract or wrong chain. - Support:Who do you rely on if something goes wrong?
CEX: their support and policies. DEX: your own checks; no central support.