2. What are Exchanges? 🤔😛 <<<Crypto Education>>>

24 ott 2021

In the world of cryptocurrencies there are two types of exchange. CEX and DEX. The graph shows the difference for each one.

What you should know about CEX:

• Used to change fiat to crypto and crypto to fiat.
  
• CEXs can block your money without warning for any reason.
  
• The CEX may ask to verify your identity and origin of funds.
  
• Some cannot serve clients depending on their location.
  

What you should know about DEX:

• DEXs are smart contracts that exchanges run.
  
• To use a DEX you need to already have cryptocurrencies in possession since they do not have fiat money input.
  
• Most DEXs trade only with assets from the same chain where they are located. Ex Uniswap is used to exchange ERC-20 Ethereum tokens.
  
• DEX can be used from your software or hardware wallet.
  

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