DEX vs. CEX: Which Will Lead the Crypto Market? Control DEX operates without a central authority, while CEX is managed by an entity, ensuring structured oversight. User Custody DEX users control their private keys, offering full ownership, whereas CEX holds funds on behalf of users. Liquidity DEX relies on user-provided liquidity, leading to lower volumes, while CEX benefits from market makers for higher liquidity. Trading Speed DEX transactions depend on blockchain confirmations, making them slower than CEX, which uses centralized order matching. KYC/Regulations DEX allows anonymity with no KYC requirements, whereas CEX mandates identity verification for compliance. Security Risks DEX carries smart contract risks but lacks a single point of failure, while CEX is prone to hacks and insider fraud.