CEX vs DEX

A centralised exchange (CEX) is a company that holds your funds in an account; a decentralised exchange (DEX) lets you swap from your own wallet through smart contracts.

What it means

A CEX needs an account with an ID check and matches orders in an order book; on a DEX your coins stay in your wallet and you trade against a liquidity pool.

What to watch

On a CEX, who holds the funds and whether withdrawals work; on a DEX, which contract you connect to, what you approve and which token you receive.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.