Cryptocurrency tokens are bought and sold on cryptocurrency exchanges. Centralized exchanges (CEX) like Coinbase and Binance are hosted on traditional network infrastructure, allowing users to buy and sell cryptocurrency. CEXs act as an intermediary between users and blockchains, exchanging fiat currency for crypto while acting as the custodian of tokens without needing a blockchain wallet.

Decentralized exchanges (DEX) are peer-to-peer marketplaces where users can trade cryptocurrency without an intermediary to facilitate the trade. DEXs are run through smart contracts, which utilize order books or automated market makers to match buyers and sellers.

CEXs are often more user-friendly and more straightforward for novice investors to navigate. At the same time, DEXs are typically preferred by on-chain users who are more familiar with using dapps and on-chain products.

CEX:

https://www.investopedia.com/tech/what-are-centralized-cryptocurrency-exchanges/

https://www.bitcoin.com/get-started/what-is-a-cex/

DEX:

https://chain.link/education-hub/what-is-decentralized-exchange-dex

https://cointelegraph.com/learn/what-are-decentralized-exchanges-and-how-do-dexs-work CEX vs. DEX:

https://coinledger.io/learn/centralized-vs-decentralized-crypto-exchanges

https://cointelegraph.com/learn/centralized-vs-decentralized-crypto-exchanges