A centralized exchange is easier to use and lets you cash out in dollars. A decentralized exchange lets you keep your own keys but asks more of you. Choose by what you need to do first.
The differences that matter
| Centralized (CEX) | Decentralized (DEX) | |
|---|---|---|
| Who holds your funds | The exchange | You, in your own wallet |
| ID checks | Often required | Not required |
| Fees | Often fixed and relatively cheap; cashing out to a bank can cost extra | About 0.2% to 1% per trade, plus network fees |
| If you lose your password or keys | The exchange can usually reset a password | Lost keys cannot be recovered |
| Ease for a beginner | Easier, more assets, dollar cash-out | Harder, fewer assets, rarely supports dollar cash-out |
This comparison follows a 2022 explainer from Ergo Platform. Fees and rules change, so check current numbers before you trade.
A simple rule of thumb
If you need to turn crypto into dollars, start with a centralized exchange. If you already have a wallet and want to keep custody, a decentralized exchange can work, but start with a small swap.
What goes wrong most often
- Sending to the wrong network or address. Copy the address, never retype it.
- Swapping into an unknown token. Pairs for custom tokens carry rug-pull risk.
- Losing keys to a wallet you control. Nobody can recover them for you.
Where account apps fit
Account apps such as Nexo bundle buying, trading and earning in one place. They carry the same trade-off as a centralized exchange: the company holds your assets. Check that the service is available where you live.
Some links on this site are affiliate links; we may earn a commission at no cost to you. Educational content only, not financial advice. Crypto prices move fast and you can lose what you put in.