Centralized Exchange (CEX) CEX is an exchange that is managed | forsage_official

Centralized Exchange (CEX)
CEX is an exchange that is managed from a single center. Control over exchange operations, security of funds, service is the responsibility of the exchange administration.

Examples of CEX: Binance, Coinbase, Kraken, etc.

Benefits:
- Fiat access
- Extensive trading functionality
- Liquidity

Disadvantages:
- No access to private keys
- Security risk
- Price manipulation (bots, etc.)
- KYC (identity verification procedure)

When you keep funds on the exchange, they become the property of the exchange until you withdraw them to your wallet.

Decentralized Exchange (DEX)
DEX is a decentralized platform built on distributed ledger technology and powered by smart contracts.

DEX examples: Uniswap, Curve Finance, SushiSwap

Benefits:
- Anonymity
- Private keys in the hands of the owner
- Ability to quickly add coins for exchange
- No KYC
- Nobody can block your account

Disadvantages:
- Limited set of functions (pending)
- Liquidity is lower than on CEX (Uniswap solves this problem with a liquidity ratio of $4.39 billion)
- Difficulty for beginners compared to CEX
- Fiat is not supported

The FORSAGE community encourages partners to be wary of centralized exchanges. And the statistics confirm this: hackers stole $300.1 million at the rate of 2020 from exchanges last year

If you have any questions about the operation, reputation or security of exchanges, then don't hesitate to ask the FORSAGE support service

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