Difference between wallet and exchange
| DIFFERENCE (WALLET) | DIFFERENCE (EXCHANGE) |
|---|---|
| wallets are used to store cryptocurrency assets and allow us to send and receive them | On the exchange you can only sell, buy or trade our assets |
| decentralized wallet, which makes it more reliable and secure | Most of the exchanges currently on the web are centralized |
| In our wallets we have to be careful with our passwords because if they are lost somehow, we will have no way of accessing them | On the other hand, instead we have the possibility to be able to reset the password |
| In our wallet we are fully responsible for our assets and money protector | On the exchange, we have no control over our assets, they are the ones who protect our assets |
DEX and CEX ADVANTAGES AND DISADVANTAGES:
DEX ADVANTAGES
People have complete control over their assets and we are responsible for them because we can handle them with complete freedom.
This great security affords us, which makes the theft of our data or funds very difficult for hackers or hackers.
The commission is very low compared to the CEX system, the anonymity it gives to each user.
DEX'S DISADVANTAGES
Most give us a bit of variety when it comes to buying cryptocurrencies.
Another drawback is that if we lose the access key to our wallet, we will have no way of recovering it and therefore we will lose all our assets.
It has little liquidity, and this little liquidity results in a small volume of business and this in turn means that many operations tend to take longer than usual.
Sometimes it tends to be a bit complicated and clunky for new users to use.
CEX ADVANTAGES
Is it not like DEX if we lose our password we just need to contact customer service and they will tell us about our password recovery.
Unlike DEX, it has a wide variety of cryptocurrencies available for purchase, which with this method can be purchased with fiat money.
Unlike DEX, this one has a user-friendly interface for those new users.
The transaction methods are reliable and very secure.
CEX DISADVANTAGES
It is vulnerable to hacker attacks because it lacks great security and protection for your data, which can be compromised.
The belief that our money and transactions are safe does not depend on us but on third parties or intermediaries.
The fees are high in terms of transactions and operations.
Often creating an account is usually tedious due to the sheer amount of information they need from us to create an account.
Thank You
