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Crypto exchanges serve as the backbone of the cryptocurrency market, facilitating users to buy, sell, and trade digital assets.

These exchanges can be divided into two main types: centralized and decentralized.
Centralized exchanges (CEXs) depend on third-party operators, ensuring smooth transactions for users.
The downside is the reliance on the exchange for fund storage, which may result in fund mismanagement.
On the other hand, decentralized exchanges (DEXs) offer a trustless, peer-to-peer trading environment. Relying on decentralized infrastructure, DEXs reduce the risk of hacks but may challenge beginners due to technical interfaces.

To select the right crypto exchange, users should evaluate security, fees, and features. By understanding the distinct qualities of CEXs and DEXs, individuals can make informed trading decisions.

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