Friday, February 23, 2024
HomeNewsDetailed Guide: Knowledge of DEX (Decentralized Exchange) & CEX (Centralized Exchange).

Detailed Guide: Knowledge of DEX (Decentralized Exchange) & CEX (Centralized Exchange).

**————** Hello guys! The topic I write about this week is about CEX and DEX. These are the two most popular forms of play for most of you. However, because they are so engrossed in trading, not everyone is diligent to learn more about the ongoing ”game”, the characteristics of each type, the advantages and disadvantages of each type, and how to keep it safe. . Let’s go! Summary: * CEX (Centralized Exchange) ? * DEX (Decentralized Exchange) ? * Conclusion # **I. All about CEX** 1. **Concept**: CEX is a kind of centralized cryptocurrency exchange, allowing users to keep their personal identities private during the transaction, in short. na is a place for men to buy, sell and trade cryptocurrencies more easily. 1. **Features** * CEXs act as an intermediary between buyers and sellers, accepting traditional currencies (eg VND, EUR), cryptocurrencies and processing transactions. Simply P2P. * Centralized exchange: Manage accounts and provide trading services to users. However, there are also disadvantages (more on that later) * Large scale: Popular CEXs like Binance, Okex, Coinbase have millions of users and billions of dollars in transactions every day. * Diverse services: At CEX provides many crypto currency trading pairs, leverage, launchpad IEO, token exchange and other services. **3. Advantages** * Easy to use: This is not to mention =)) user-friendly and intuitive interface, suitable for beginners to play coin. As I use Binance, it’s really good, it’s easy to understand its use mechanism, except for some loans and leverages, it takes longer to find out * High liquidity: Most people probably understand the logic of tokens from CEX. If it is listed on the big/small exchanges, most of the time it’s completely blown out, right!! Because large CEXs have many users and large trading volumes, creating a good liquidity pool for trading, discharging of top holders or avoiding high price slippage when swapping on CEX. The easiest is to have a limit buy/sell or market (oderbook) * Transaction fees are also a great advantage when calculating transaction fees based on a percentage or a flat fee. Fees may vary by exchange and transaction type. * Cross-platform: CEX typically supports multiple platforms, including mobile apps and web browsers, allowing users to trade from any device. Reviews are extremely convenient. * There are many more security advantages – invest in security measures to protect user assets such as two-factor authentication, data encryption and secure system management. Customer support function: CEX Crypto provides a customer support service to answer questions and solve users’ problems (I used to get some money back when I mistakenly transferred it, it cost me a fee of about 50$) ) Crypto CEX exchanges are generally required to comply with the regulations and rules of financial regulation and anti-money laundering agencies. **4. Cons** * Account management: The essence of the exchange is centralized, ie subject to control! Users have to trust and deposit funds in the exchange, there is a risk of losing their cryptocurrency if the exchange is hacked or there is a security incident. There are a lot of FUD about arbitrarily locking accounts, losing money or automatically placing trades of exchanges =))) If you get it then why cry, thank God, but support often doesn’t solve the problem. * Regulation and oversight: CEXs may be subject to operational restrictions or control by regulatory authorities, depending on the country or region in which they operate. Like Binance US. * Security Risk: Again and again, nothing is 100% safe, so protect your account! Avoid revealing 2FA, or any other important information =)) it takes it away! **5. Popular forms of making money in CEX** * P2P : Seeing many merchants trading on the floor doing well! =)) If anyone has a lot of money, try it, I will. =)) * Leverage (Future, margin): Simply understand that you can play a larger volume than you have =)) sounds like it :vv nom na is a loan, most new players will jump in here! I can see that anyone who gets involved is also very early. * Spot: This is 100% sure to know =)) * Eat ref commission: There is a commission program for the referrer. You can make money by referring new users to the exchange and get a percentage of their trading commission. =)) That’s a lot, don’t believe it, ask TCVN to know =)) * Staking and Lending: CEX allows you to participate in a staking or lending program, in which you provide your stablecoin/coin to receive interest. or daily/weekly/monthly percentage fee. * Mining Pool: CEX provides a mining pool service, allowing you to join a cryptocurrency mining network and receive rewards based on your contributions. * Launchpad: Hold exchange coins like: $BNB,$MX, $GT… until IEO new project, dep to play. A good way for people with large capital. **7. Some steps to note when you play CEX** * Choose a reputable broker: Choose a reputable broker, have a large number of users and meet high security standards. If you use Binance, even though it has FUD, it’s the most delicious. I believe in CZ vision too :)) * Pay attention to transaction fees, funding especially for those who play futures =)) It costs a lot * Account security: You need to secure your account by using a password strong passwords, use security tools like two-factor authentication, and avoid sharing your account information with anyone else. * P2P transactions: Learn how to transact, P2P scams or how to properly handle when money is soaked… it’s better to know in advance. * Account authentication: Is there a floor that needs a floor, but it’s safe to do. This authentication process may take a certain amount of time and requires you to provide information such as name, address, phone number, ID picture, portrait, etc. # **II. All about DEX** 1. **Concept**: is a place where cryptocurrency exchanges operate on the blockchain platform without the need for the intermediary of any third party (decentralized), allowing users to Users exchange directly with each other, keep their assets in personal wallets and use smart contracts to perform transactions. This brings transparency, safety, and ownership of assets to users. 1. **Advantages** **=)) **Advantages are also many: * Decentralized: DEX works on blockchain platform and does not need third party intermediaries. Users can transact directly with each other without trusting a third party, which is so true =)) * Convenience: DEX uses smart contracts to execute and confirm transactions. Transactions on DEXs are usually done automatically, minimizing outside interference and increasing transparency. * Asset Ownership: On a DEX, users are in complete control of their assets. Assets do not need to be deposited on the exchange, but are still stored in the user’s personal wallet. * Many * Privacy: Some DEXs allow users to trade without revealing personal information, ensuring user privacy. ⇒ These are the new decentralized standards, CEX was born to improve some problems in DEX but lose decentralization. What I like the most about DEX is transparency, clarity, checking tx no matter how long it takes. You can comfortably follow what the sharks do, especially where you are hunting to make money =)) You also know the 3 core issues in blockchain: * Scalability * Decentralization * DEV security is increasing day by day The more you want to develop to solve problems, the more money you want to attract, the more trends/narratives will be born, the better your chances of opening an account will be. * Community participation: DEXs often have a high community, users can contribute to the development and management of the exchange on social channels such as Telegram, Twitter, Reddit, Discord… **3. Cons** **=)) Cons are no less:** * Low liquidity: Liquidity is a common DEX problem! often have low liquidity due to lack of user concentration and direct trading between users, finding suitable buy or sell orders can be difficult and cause delays in trade execution => slippage * Transaction latency: Since transactions on DEX must be confirmed on blockchain, transaction execution time may be longer than in CEX. This can create waiting and not convenient for users, the most painful is when the swap fails due to low liquidity, leading to high slippage that exceeds % setting :))) Anyone who plays ERC will understand that losing orders will be painful. how. * Accessibility: DEX requires users to have knowledge of personal wallet usage and interact with a more complex, multi-action user interface. This can reduce the reach and attraction of new users. This is very tiring because many protocols are cumbersome, sometimes it takes a whole session to learn to use =)) * Potential security risks: Although DEX is beneficial in terms of security because it does not store users’ assets, the Using personal wallets and smart contracts can also face security risks such as smart contract vulnerabilities, going online to type ”the biggest crypto hacks”, hacking wallets. There are many cases of mistaken transfer, loss of private key, and scam tokens. Read this article for security: (https://www.facebook.com/groups/ryanvanhungnguoiban/permalink/512897630990620/)(https://www.facebook.com/groups/ryanvanhungnguoiban/permalink/512897630990620/) * *4. Ways to make money on CEX** * Liquidity Provider (LP): You participate in liquidity trading on trading pairs on DEX by providing tokens to trading pairs. In the process, you will receive a portion of the profit from the trading fees. * Staking: Some DEXs allow you to stake your tokens into smart contracts to support DEX operations. * Yield Farming: This is an activity that you can participate in to profit from providing liquidity for DeFi (Decentralized Finance) projects. By depositing your tokens into transactions or smart contracts, you can get rewards in tokens or profit from the rate of return. * Launchpad and IDO: Some DEXs offer Launchpad functionality (release platform) that allows you to participate in new projects through Initial DEX Offering (IDO). By investing in potential projects, you can profit from the sale of project tokens on the DEX. 2021 is the year of the IDO gamefi that brothers/ * Arbitrage: With the decentralization of the DEX, there may be price differences between different exchanges and trading pairs. By taking advantage of this price difference, it is possible to trade between exchanges to profit from the difference in value. **5. What to know to play DEX.** * Understanding blockchain technology and how DEX works: This is very important! Learn about how DEXs work, smart contracts, and concepts related to blockchain technology. This will help you understand how the DEX works and how to interact with it. * Use personal wallet: To participate in transactions on DEX, you need to own a personal wallet to store and manage your assets. Learn about popular personal wallets and make sure you’ve chosen a safe and trusted wallet. Metamask is good * Master the operation: Learn about the tools and interfaces of the DEX you intend to use. This includes learning how to execute trades, adjust gas, slippage, withdraw and other features available on the platform. For example, Pancakeswap plays BSC chain, Uniswap plays ERC chain. Go to youtube type and then watch gradually. * Manage risk and security: Protecting your assets comes first, know how to revoke, how to strengthen security manually * Join the community and learn from others: Participate in forums , groups, social networks to connect with the DEX community. Learn from the experiences of others and share your knowledge to improve your DEX trading skills. **III. Tips – Conclusion** CEX and DEX are 2 places where anyone who plays coins can experience, learn to understand the nature of the market and make money. Each has its own pros and cons! Nothing is superior to the other. If you master at CEX and earn a stable income on it, then know if DEX or not is just secondary (opposite) Of course, if possible, both, because if you want to change positions quickly, trend/narrative is something that should not be ignored. ! And DEX is a huge opportunity for us. Read this for a little gameplay: (https://www.facebook.com/groups/ryanvanhungnguoiban/permalink/497804355833281/)(https://www.facebook.com/groups/ryanvanhungnguoiban/permalink/497804355833281/) Wish you a nice weekend! Have any questions, just chat.

Source: Collector

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments