Custody: DEXs are non-custodial, which means traders don't need to relinquish the control of private keys to transact. Instead, externally held wallets interact with DEXs, and trades self-execute through smart contracts. Centralized exchanges, by contrast, play the role of custodian for your funds by controlling your private keys. This requires you to relinquish control of your private keys, but centralized exchanges offer trust and security.

Diversity: In October 2020, there were over 7,400 cryptocurrencies on the market. CEXs exercise control over the cryptocurrencies they will list, and will generally only list those with adequate trading activity, prevalence, and effective security standards to ensure profitability and legal compliance. Many altcoins are only accessible through DEXs, where P2P transactions can occur without high trading volumes. This provides a wider opportunity for engagement in digital assets and enhances financial inclusion.

Trustless Transactions: On CEXs, every transaction is overseen and recorded by a central authority, the exchange itself. Through smart contracts, DEXs execute trades and record them to the blockchain, enabling trustless transactions. And since DEXs do not hold your funds, they are less likely to be targeted by hackers.