Understanding DEX
Cryptocurrencies can be exchanged through various methods, including peer-to-peer (P2P) trading, centralized exchanges (CEXs), and DEXs. Each method has its advantages and characteristics:
- P2P: In this method, two parties directly buy and sell cryptocurrencies among themselves without intermediaries. It prioritizes privacy and enables a wide range of payment options, making it accessible to users worldwide. However, to ensure the completion of the transfer, certain players have appeared that may act as intermediaries for a small fee, such as escrow services, rating platforms, or dispute resolution services.
- CEX: This method offers cryptocurrency exchange services to users who have an account on their platform. It primarily matches buyers with sellers using an order book, where market makers and takers place their orders. The CEX’s revenue is generated through transaction fees on each facilitated trade. Major CEXs include Binance, OKX, Coinbase,...
