Centralized and Decentralized Exchanges — Which to Choose for Crypto Trading

Over the past few years, the crypto market has more than tripled. Competition has intensified, projects have matured, and users have gained experience. What recently seemed experimental is now accepted as the norm. More and more participants move beyond simple trading and use DeFi, farming, and hybrid strategies.

What you will learn in this article

• how centralized and decentralized exchanges differ in practice;
• how control over funds works and why it determines the platform choice;
• where fees are lower and how to optimize costs on TRON;
• how crypto exchange liquidity is structured and why it affects the final trade price;
• which risks occur on both types of platforms;
• how to choose an exchange for trading based on your goals and experience.

According to DefiLlama, in 2025 the combined DEX turnover exceeded $1.4 trillion per quarter. The Block estimates that the DEX share in spot trading rose to a quarter of the market. CoinGecko confirms Uniswap’s leadership among DEXs and steady segment growth. Chainalysis and TRM Labs record increased attention to cyber risks, making a competent choice of platform especially important.

CEX is a centralized exchange. The platform acts as an intermediary, holds client assets, maintains order books, manages liquidity, and provides support. A user creates an account, completes KYC, funds the balance, and trades in a familiar interface. This format is convenient and fast. It resembles a banking service where much is done for you. According to Binance Research, most beginners start here because the entry barrier is low and fiat top-up methods are available.

DEX is a decentralized exchange. Trades occur directly between wallets via smart contracts. No registration is required; personal data is not needed. The user holds their own keys and confirms transactions independently. This enhances privacy in cryptocurrency and provides autonomy. DefiLlama notes that the share of swaps via DEXs is growing thanks to the development of low-fee networks and tools like route aggregators.

Both models solve one task: buy, sell, or swap assets. The difference between a CEX and a DEX is where the trade is executed and who controls the funds. The first bets on service and infrastructure. The second—on code and direct interaction with the blockchain.

Control over funds defines the entire user experience. In a CEX, funds are held in exchange accounts. This is a custodial approach. The platform manages the keys, ensures custody, and handles operational processes. The user gets speed and support but trusts a third party and accepts related limitations. If the platform faces an investigation or a technical threat, deposit and withdrawal delays are possible.

In a DEX, a non-custodial model is preserved. Keys and access to funds remain with the user. Transactions are signed locally in the wallet and executed by smart contracts. This approach strengthens independence and transparency. According to CoinGecko and DefiLlama, most volumes are concentrated in several protocols with proven architectures, which further increases trust. But autonomy also means responsibility. An address error or interacting with an unsafe contract will result in irretrievable loss of funds. There is no “undo” button.

An easy way to remember: in a CEX, the user works with the exchange. In a DEX, the user works with the smart contract. This difference between centralized and decentralized exchanges explains fees, speed, and price behavior on large trades.

Overall, a CEX provides convenience, speed, and fiat access but requires trust in the platform. A DEX provides autonomy, transparency, and full control of funds; however, all responsibility lies with the user. The final choice depends on what matters more to you—comfort and support, or independence and freedom of action.

Users often wonder where fees are truly lower. It all depends on how frequently you transact and which network you choose. On centralized exchanges, rates are fixed and clear. The base trading fee at the largest platforms stays around one-tenth of a percent, and a separate fee is usually charged for fiat deposits or withdrawals. Expenses are easy to predict, but with active trading, total fees grow quickly.

On decentralized platforms, fees depend on network load. In Ethereum, transaction costs increase with demand, while in BNB Chain costs remain more stable. On TRON, a native model based on Energy and Bandwidth is used. To transfer USDT TRC-20, you must have an Energy reserve or TRX. Without Energy, the network burns tokens for each transfer, and the fee can reach several dollars. After TRON’s August 2025 update, the base cost of Energy nearly halved, but due to TRX appreciation, expenses remain noticeable.

Many users point out key issues:

• expensive transfers, especially with frequent transactions;
• without staking or renting, TRX consumption becomes constant;
• you have to keep a TRX buffer even if you only work with USDT.

To avoid extra costs on transfers, users increasingly choose TRON Energy rental. This tool helps reduce fees without unnecessary risks.

Without rental, for a USDT TRC-20 transfer the network charges:

• 6,77 TRX if the recipient address already has a token balance;
• 13,37 TRX if USDT is absent there.

At a TRX rate of about $0.34, the fee comes to $2.3–$4.5 per transaction.

The Tron Pool Energy service securely connects Energy to your address and reduces the fee for USDT TRC-20 transfers. Instead of the standard 6,77 or 13,37 TRX, you pay about 3 or 6 TRX depending on whether the recipient wallet already holds USDT. You don’t need to keep TRX on balance if the Unlimited Energy plan is activated. The connection takes a few minutes and is not time-limited. The service is compatible with any non-custodial TRC-20 wallets, including TronLink and OKX Wallet. One account lets you connect up to thirty addresses, which is especially convenient for businesses, freelancers, and DeFi projects.

This approach eliminates high fees and makes USDT TRC-20 transfers cost-effective again. For active users, it’s a reliable solution that helps save up to 65% on network costs and avoid dependence on TRX fluctuations.

CEX and DEX security depends on different factors. In a CEX, exchange processes play the key role: cold wallets, multi-level access policies, behavioral analytics, insurance funds, and external audits.
According to Chainalysis, by mid-2025 the total damage from attacks on services exceeded $2 billion. Reports mention major centralized players as well, reminding us that risk is non-zero even in the top segment. The Block tracks similar incident statistics and emphasizes that response time and management practices are critical.

In a DEX, users face other types of threats. The quality of smart contracts and their deployment sources are crucial. Code bugs, vulnerabilities in oracle integrations, and incorrect permission settings all increase risk.
TRM Labs and CertiK record hundreds of millions of dollars in losses due to phishing and honeypot contracts. Studies show that many users sign suspicious approvals without reading pop-ups and later face token outflows by third parties.

Privacy in cryptocurrency works differently. In a CEX, personal data is stored by the exchange and protected by internal regulations. In a DEX, there’s no verification or sharing of personal data, but all transfers are visible on-chain.
Analytics firms like Arkham Intelligence and Nansen can link addresses together and infer who is behind them. To maintain confidentiality, it’s better to use separate wallets for trading and storage and avoid granting excessive permissions to funds.

Many users don’t limit themselves to one model and combine centralized and decentralized platforms. This approach helps reduce risks, optimize fees, and manage assets flexibly. To combine them effectively, it’s important to know the strengths of each model.

A centralized exchange suits those who value comfort and are ready to entrust operations to the platform. It offers fiat access via cards and bank transfers, high liquidity, and fast order execution. It’s easy to work with large amounts and use additional tools such as margin trading and derivatives.
According to Binance Research and The Block, the main share of the spot market is still concentrated on CEXs. Even when DEXs post record volumes, centralized platforms maintain leadership thanks to institutional clients and stable infrastructure.

What to look at when choosing a CEX

• Registration and KYC. Transparent procedures help quickly restore access if a device is lost.
• Fees. Review trading tiers, withdrawal fees, and P2P terms to assess real costs.
• Liquidity. The deeper your pairs’ books, the lower the final slippage.
• Security. Make sure the exchange supports 2FA, anti-phishing codes, and publishes proof-of-reserves.

A decentralized exchange suits users who value independence and control over funds. No verification is required, the wallet remains only with you, and DeFi tools are available 24/7. On a DEX, you can work with liquidity pools, participate in farming, and swap rare tokens.
According to CoinGecko, the shares of Uniswap and PancakeSwap in DEX volumes remain high, and the number of active addresses in 2025 grew by more than sixty percent. This confirms the gradual shift toward decentralized formats.

What to consider before getting started

• Network and fees. BNB Chain is suitable for frequent, low-cost operations. Ethereum is convenient for large trades and DeFi but requires gas reserves.
• Protocol and audit. Review reports by CertiK and Trail of Bits; check contracts before connecting.
• Approvals and risks. Grant minimal permissions and periodically revoke old approvals in your wallet.
• Swap routes. Aggregators help find better rates and reduce slippage.

A DEX offers freedom and transparency but requires attentiveness and basic wallet skills. Mistakes here are costlier than on centralized platforms.

An optimal strategy combines both models:

• keep large sums in cold wallets;
• handle fiat on- and off-ramps via CEX;
• do token swaps and DeFi operations on DEXs in low-cost networks;
• separate addresses for personal and work transactions to improve security and simplify reporting.

This strategy helps balance convenience with independence. Research by Kaiko and Messari shows that a combined approach reduces risks, makes asset management flexible, and lets you benefit from the strengths of each model.

A CEX gives comfort, speed, and support. It’s a convenient entry point with fiat access and deep liquidity. A DEX provides freedom, privacy, and control over funds. It’s the choice for those ready to work directly with protocols and minimize dependence on intermediaries.

The ideal strategy is to use both models for their intended purposes. Use a CEX for buying and cashing out fiat. Use a DEX for swaps and DeFi. In the TRON ecosystem, reduce costs by renting Energy via Tron Pool Energy. This makes USDT TRC-20 payments stable and helps you plan a fee budget.