CEXs (Centralised Exchanges) have always been the dominant players in the world of cryptocurrencies, positioning themselves as leaders in current trade transactions.
Centralised Exchanges (CEXs) have always been the dominant players in the world of cryptocurrencies, positioning themselves as the leader in current trade transactions. However, the rise of DEXs (Decentralised Exchanges) is creating new competition and becoming popular among cryptocurrency enthusiasts.
According to reports, industry leaders PancakeSwap and CoinGecko say that DEX exchanges will experience exponential growth in 2025, but CEXs will still be the main choice for entry-level cryptocurrency traders.
Introduction into the World of CEX and DEX
Coinbase and Binance are in control of the trading market. With over 300 million users combined, these two centralised exchanges (CEX) dominate the market with features such as high liquidity and a user-friendly interface for newcomers.
The past year has also been good for decentralised exchanges (DEX), which offer cryptocurrency users an alternative platform for trading. DEX platforms incorporate additional layers of security to reduce exposure to excessive regulation and prevent fraudulent activity. Thanks to these features, decentralised exchanges are posing a challenge to centralised exchanges. However, although DEX are the new contenders in the race, there is no chance that CEX will drop out.
CEX VS DEX
When asked about the future of DEX and CEX, Chef Kids, Head Chef of PancakeSwap, said:
"Yes, decentralised exchanges are on the verge of growth in 2025, but CEXs will continue to play an important role in the cryptocurrency ecosystem, especially in terms of onboarding new users. Both types of exchanges have dedicated roles and, together, will contribute to the growth of cryptocurrencies in the coming years."
Cryptocurrencies Explained in Short
Centralised Exchanges (CEXs) are platforms operated by a single centralised entity. These exchanges hold digital assets on behalf of their users and allow them to buy, sell and withdraw cryptocurrencies. The central entity acts as a bridge between buyers and sellers, ensuring that transactions are transparent and secure.
CEX platforms such as Binance, Kraken and Coinbase are the leading platforms for cryptocurrency trading, with a simple user interface that allows even new users to make transactions with a simple tap.
In a statement released by Shaun Lee, analyst at CoinGecko, we read: 'Overall, CEX cryptocurrency exchanges have shown great results, with the top 10 reporting transaction volumes in excess of $2 trillion. In 2023, the leading exchanges had only managed to surpass the $1 trillion mark."
CEX
Cryptocurrency exchanges are known as complete solutions for certain types of cryptocurrency investors, as they are monitored by regulators. This makes them a safe haven for those who are planning to transition from traditional finance to the world of cryptocurrencies.
DEXs Enter the Game
Unlike CEXs, where a single entity handles transactions and operates following the KYC process model, DEXs are exchanges that operate via a P2P (Peer-To-Peer) network, reducing the need to depend on intermediaries to exchange tokens. DEX platforms allow users to operate and trade cryptocurrencies without revealing their identity. Features such as these have attracted the attention of investors who prioritise anonymity and security when exchanging cryptocurrencies.
The popularity of DEX platforms has grown significantly, offering cryptocurrency traders and exchangers a decentralised method, an alternative to centralised exchanges. Because DEX platforms are designed using a blockchain network, trading is facilitated by immutable smart contracts, thus eliminating the need for intermediaries.
DeFi platforms have emerged as rivals to centralised exchanges. An example of such platforms is Hyperliquid, which is based on a top-level blockchain, offering high performance and low operating costs. This exchange has been widely adopted over the past year.
DEX
"Decentralised Exchanges (DEX) currently hold approximately 40% of the market share and are expected to grow by 2025. As DeFi evolves and its adoption is increasingly encouraged, it will play a key role in expanding the financial ecosystem," said Chef Kids."
What's Expected for the Future?
The CEX have already established a trusted image and are widely used in the industry for cryptocurrency exchanges. Being a popular choice among newcomers, they will remain around for a long time. However, concerns are emerging related to the centralised nature of these exchanges, prompting investors to move to DEXs, where security and anonymity are prioritised.
In conclusion, CEXs are already well established, while DEXs are gaining popularity. However, together, these exchanges will transform the financial industry in 2025 with unique and innovative features.
The largest cryptocurrency exchange Deribit received a takeover offer. The Kraken exchange was interested in acquiring the largest platform for trading cryptocurrency derivatives.
Centralised Exchanges (CEXs) have always been the dominant players in the world of cryptocurrencies, positioning themselves as the leader in current trade transactions. However, the rise of DEXs (Decentralised Exchanges) is creating new competition and becoming popular among cryptocurrency enthusiasts.
According to reports, industry leaders PancakeSwap and CoinGecko say that DEX exchanges will experience exponential growth in 2025, but CEXs will still be the main choice for entry-level cryptocurrency traders.
Introduction into the World of CEX and DEX
Coinbase and Binance are in control of the trading market. With over 300 million users combined, these two centralised exchanges (CEX) dominate the market with features such as high liquidity and a user-friendly interface for newcomers.
The past year has also been good for decentralised exchanges (DEX), which offer cryptocurrency users an alternative platform for trading. DEX platforms incorporate additional layers of security to reduce exposure to excessive regulation and prevent fraudulent activity.
Thanks to these features, decentralised exchanges are posing a challenge to centralised exchanges. However, although DEX are the new contenders in the race, there is no chance that CEX will drop out.
When asked about the future of DEX and CEX, Chef Kids, Head Chef of PancakeSwap, said:
Cryptocurrencies Explained in Short
Centralised Exchanges (CEXs) are platforms operated by a single centralised entity. These exchanges hold digital assets on behalf of their users and allow them to buy, sell and withdraw cryptocurrencies. The central entity acts as a bridge between buyers and sellers, ensuring that transactions are transparent and secure.
CEX platforms such as Binance, Kraken and Coinbase are the leading platforms for cryptocurrency trading, with a simple user interface that allows even new users to make transactions with a simple tap.
Cryptocurrency exchanges are known as complete solutions for certain types of cryptocurrency investors, as they are monitored by regulators. This makes them a safe haven for those who are planning to transition from traditional finance to the world of cryptocurrencies.
DEXs Enter the Game
Unlike CEXs, where a single entity handles transactions and operates following the KYC process model, DEXs are exchanges that operate via a P2P (Peer-To-Peer) network, reducing the need to depend on intermediaries to exchange tokens. DEX platforms allow users to operate and trade cryptocurrencies without revealing their identity. Features such as these have attracted the attention of investors who prioritise anonymity and security when exchanging cryptocurrencies.
The popularity of DEX platforms has grown significantly, offering cryptocurrency traders and exchangers a decentralised method, an alternative to centralised exchanges. Because DEX platforms are designed using a blockchain network, trading is facilitated by immutable smart contracts, thus eliminating the need for intermediaries.
DeFi platforms have emerged as rivals to centralised exchanges. An example of such platforms is Hyperliquid, which is based on a top-level blockchain, offering high performance and low operating costs. This exchange has been widely adopted over the past year.
What's Expected for the Future?
The CEX have already established a trusted image and are widely used in the industry for cryptocurrency exchanges. Being a popular choice among newcomers, they will remain around for a long time. However, concerns are emerging related to the centralised nature of these exchanges, prompting investors to move to DEXs, where security and anonymity are prioritised.
In conclusion, CEXs are already well established, while DEXs are gaining popularity. However, together, these exchanges will transform the financial industry in 2025 with unique and innovative features.
Read Next
US Court Fines BitMEX Another $100 Million. What Happened?
In the summer of 2024, the platform had already agreed to pay a fine of USD 110 million, but the court deemed it insufficient.
Regulatory Compliance 2.0 - South Korea Prepares to Introduce Second Phase of Cryptocurrency Laws
South Korea is preparing to reveal the next phase of cryptocurrency regulation in the second half of 2025.
Exchange Deribit Receives Offer to Purchase
The largest cryptocurrency exchange Deribit received a takeover offer. The Kraken exchange was interested in acquiring the largest platform for trading cryptocurrency derivatives.
The 10 Most Wanted Professions on the Web3 for a Successful Career
With the evolution of Web3, the digital world is undergoing a radical transformation.