The battle between DEXes and CEXes defines crypto’s future. While centralized exchanges still dominate volume, decentralized alternatives are capturing increasing market share.
Market Share Trends
- DEXes now capture ~10% of spot trading volume
- Steady growth from ~1% in 2019
- Accelerated adoption after FTX collapse
Detailed Comparison
| Factor | CEX | DEX |
|---|---|---|
| Custody | Exchange holds your funds | You control your keys |
| KYC | Required for most | None (permissionless) |
| Speed | Instant trades | Block confirmation time |
| Fees | 0.1-0.5% + withdrawal | 0.3% + gas |
When to Use Each
Use CEX When:
- Trading large volumes with tight spreads
- Need advanced order types
- Fiat on/off ramps
Use DEX When:
- Self-custody is a priority
- Trading DeFi-native tokens
- Need permissionless access
Key Takeaways
- DEXes now capture ~10% of spot trading volume
- CEXes offer better UX and features for most traders
- DEXes provide self-custody and permissionless access
- “Not your keys, not your coins” drives DEX adoption