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What is the difference between centralized and decentralized exchanges?

Centralized exchanges (CEXs) are run by companies that hold customer accounts and custody assets on your behalf. They tend to be easier to use and support a wider range of fiat payment options. Decentralized exchanges (DEXs), by contrast, let users trade directly from their own wallets without sharing personal information, though they can be harder to navigate and rely on software that may contain vulnerabilities.