CEX vs DEX Exchanges
Ready to actually buy? You'll do it on an exchange — and there are two kinds, with very different rules. Here's which one beginners should start on, and why.
Where do you actually buy crypto?
You understand crypto, blockchain and wallets. Now the practical question: where do you turn your rupees into coins? At a crypto exchange — a marketplace that matches buyers and sellers. And there are two very different kinds.
A CEX (centralised exchange) is a company that runs the marketplace for you. A DEX (decentralised exchange) is software with no company in the middle — you trade straight from your own wallet.
A CEX is a company you trust to hold your coins. A DEX is code you use while holding your own.
Which should a beginner start with?
- A CEX is far easier to begin with. You can pay with INR, the app is simple, and there's support if something breaks. Almost everyone starts here.
- A DEX gives you full control — no company holds your coins — but it's unforgiving. One wrong click is permanent, and there's no help desk.
- The trade-off is convenience vs control. CEX = easy but you trust the company. DEX = hard but you trust only yourself.
In India, a regulated CEX that supports INR deposits and follows KYC rules is the sensible first step. Get comfortable there before you ever touch a DEX.
On a CEX, the company holds your coins — so "not your keys, not your coins" applies. Exchanges have collapsed before and taken users' funds with them. The lesson: a CEX is great for buying and trading, but don't leave large balances sitting on it. Also remember — in India, that 30% tax and 1% TDS apply to your trades here.
A CEX is an easy company-run marketplace that's perfect for beginners; a DEX hands you full control with zero safety net — start on a regulated CEX, and never leave more than you're trading on it.