CEX to DEX

Definition ∞ This term refers to the movement of digital assets from a Centralized Exchange (CEX) to a Decentralized Exchange (DEX). It signifies a shift in user preference or strategy, moving assets from platforms controlled by a single entity to peer-to-peer trading environments. This transfer often occurs to leverage specific decentralized finance applications, enhance privacy, or avoid custodial risks associated with centralized platforms. The transition involves a blockchain transaction from a CEX wallet to a user-controlled wallet, then to a DEX.
Context ∞ The migration of trading volume and assets from CEXs to DEXs is a recurring theme in cryptocurrency news, driven by evolving market conditions, regulatory actions, and technological advancements in decentralized protocols. Concerns over centralized platform solvency and data security, alongside the growing utility of DeFi, often accelerate this trend. Regulatory pressures on CEXs regarding KYC/AML compliance can also influence users to seek the pseudonymous nature of DEX trading.