It’s time to put everything on the shelves with Evercode Lab experts. And today our choice fell on crypto exchange services, or rather on their varieties.
Centralized exchanges (CEXs) and decentralized exchanges (DEXs) represent two fundamentally different architectures in the crypto world. While both serve the same purpose, facilitating the trading of digital assets, their infrastructures, levels of trust, and user experiences differ drastically.
To make it easier, we’ll break down the differences between these two models in terms of security, liquidity, and smart contract design.
Before we dive in, don’t forget to visit our website to learn more about how we can help you with the development and launch of your own WL crypto exchange, no matter CEX or DEX!
What is CEX and Its Unique Features
A centralized exchange (CEX) is a trading platform managed by a single organization. Users deposit funds into the exchange, and the platform handles the custody, order matching, and trade execution.
These include Binance, Kraken, Coinbase Exchange, KuCoin, etc.
Key features of CEXs:
- High liquidity: Centralized exchanges typically have large trading volumes, ensuring tighter spreads and faster order fulfillment.
- User-friendly experience: CEXs often feature intuitive interfaces, fiat on-ramps, and customer support, making them attractive for beginners.
- Advanced trading tools: Many CEXs offer margin trading, derivatives, and other sophisticated financial products.
- Centralized custody: Assets are stored on the exchange’s servers, which can lead to some security risks.
What is DEX and Its Unique Features
A decentralized exchange (DEX) operates without intermediaries, relying on blockchain smart contracts to facilitate trades directly between users. Funds stay in the user’s wallet until the trade is executed, improving transparency and control.
These include PumpSwap, PancakeSwap, Uniswap, Hyperliquid, etc.
Key features of DEXs:
- Non-custodial security: Users retain control of their private keys, reducing counterparty risks.
- Smart contract-based transactions: Trades are executed transparently on-chain through automated protocols.
- Flexible liquidity models: DEXs often use liquidity pools and automated market makers (AMMs) instead of traditional order books.
- Global accessibility: No central authority controls access, making DEXs open to anyone with a crypto wallet.
How Evercode Lab Can Help You
At Evercode Lab, we specialize in building white-label blockchain solutions tailored to your business needs. One of our recent projects involved developing a P2P payment platform with an integrated white-label DEX aggregator, powered by the Rubic SDK.
The solution combined multiple services in one platform:
- P2P payments: Seamless transfers between users.
- On/Off Ramp integration: Easy deposit and withdrawal of fiat funds.
- DEX Aggregator (WL): A unified tool to access multiple decentralized exchanges.
How it works:
- Users log in or register for P2P payments and on/off-ramp features.
- For the DEX aggregator, no registration is required: simply connect your wallet as a guest and start trading.
By combining different infrastructures in one scalable platform, our solutions empower businesses to launch advanced crypto services quickly and securely.
Whether you’re looking to build a CEX-like user experience or integrate DEX functionalities, we can help design and deliver a solution that aligns with your goals. Just book a call with our experienced team to discuss the future development of your service face-to-face in detail.