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Blockchain & Web3
Q25 / 100
What is the difference between a "centralized exchange" (CEX) and a "decentralized exchange" (DEX)?
Correct! Well done.
Incorrect.
The correct answer is A) A CEX is run by a company that holds custody of user funds; a DEX operates via smart contracts where users typically retain control of their own funds
A
Correct Answer
A CEX is run by a company that holds custody of user funds; a DEX operates via smart contracts where users typically retain control of their own funds
Explanation
CEXs act as custodians and intermediaries for trades, while DEXs use smart contracts (often with liquidity pools) letting users trade directly from their own wallets.
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25/100