CEX vs DEX: Why do centralized exchanges continue to dominate the crypto market?

The reality is that 9 out of 10 crypto transactions still go through a CEX. And it's no coincidence.

What is a CEX really?

A centralized exchange (CEX) is basically a trusted intermediary that connects buyers and sellers of cryptocurrencies. It works similarly to your traditional bank: Binance, Coinbase, Kraken… are the “Banks of Brazil” in the crypto world.

The key difference? All your transactions are processed on the exchange's servers, not directly on the blockchain.

How does it really work?

It's simpler than you think:

1. You send your order (I want to buy 1 BTC at $43,000)
2. The exchange looks for a seller that matches your price
3. If there is no exact match? The CEX itself acts as a market maker, providing liquidity for your order to be executed instantly.
4. Ready. Your transaction is recorded on the corresponding blockchain.

Why are they still the kings?

Liquidity: A CEX has thousands of orders waiting. In a DEX, sometimes you wait hours for an execution.

Regulatory Security: CEXs perform KYC verification ( know who you are ) and AML ( prevent money laundering ). Yes, less privacy, but also less risk of scams.

Ease of access: Do you want to buy your first Bitcoin? A CEX is the natural entry point. In a DEX, you already need to be technical.

Market data: CEXs handle the volume, so they have the most accurate data on trends. Traders are keenly aware of those numbers.

The cold point: The fees

Nothing is free. CEXs charge:

• Transaction fees (0.1%-0.5% typically)
• Access to premium data
• Deposits/Withdrawals

All of that finances its operation, security, and regulatory compliance.

What comes next?

DEXs are growing, but slowly. The market continues to vote for CEXs because they offer what most need: speed, liquidity, and regulatory trust.

The reality: You will probably continue using a CEX for serious trading for years. Decentralization is the future, but the present remains centralized.