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DEX vs CEX vs liquidity aggregator

They can all facilitate an exchange, but they do not hold assets, source prices or settle transactions in the same way.

A CEX typically matches or executes trades inside a provider-controlled account system. A DEX uses smart contracts and on-chain liquidity. A liquidity aggregator compares or combines routes across one or more sources before presenting a quote. DEX and aggregator describe execution layers; they do not automatically prove custody, price quality or safety.

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Last documentary review: 2026-08-04

01/Quick comparison

The details to check before you decide.

Key pointWhat it meansWhat to check
CustodyCEX often controls account keys.DEX/aggregator commonly uses a connected wallet.
LiquidityCEX uses its venue or market makers.DEX uses pools; aggregator can compare multiple sources.
SettlementOften internal until withdrawal.Swap settles on the selected blockchain.
Main cost viewTrading and withdrawal fees.Quote, price impact, protocol costs and network gas.
02/What to consider

Different execution layers

CEX, DEX and aggregator describe different operating models.

Aggregation compares

It searches routes; it does not guarantee a permanent winner.

Use the final output

Include gas, impact, fees and minimum received.

03/Step-by-step guide

How a CEX works

A centralized exchange maintains user accounts and an internal trading system. Trades can settle in its ledger without immediately producing a public blockchain transaction. Deposits and withdrawals bridge that account system to an external network, subject to the provider's controls and availability.

How a DEX works

A decentralized exchange uses smart contracts to exchange assets against pools, market makers or other on-chain mechanisms. The user generally signs from a compatible wallet and the result settles on-chain. Pool depth and contract design affect the execution.

What an aggregator adds

An aggregator queries several eligible liquidity sources or paths, estimates costs and returns a route. Aggregation can reduce manual comparison, but the winning route still depends on supported networks, tokens, available liquidity, fees and the moment of the quote.

Compare total execution, not labels

Evaluate the final expected amount, minimum received, price impact, network fee, protocol or interface costs and route complexity. A direct DEX route can sometimes be competitive; an aggregator is a comparison mechanism, not a permanent guarantee of a better outcome.

Choose by task and risk

CEXs may simplify fiat access and account recovery. A DEX may suit direct interaction with a specific pool. An aggregator may suit route discovery across sources. Check jurisdiction, custody, contracts, supported networks and operational risks for the exact action.

Where Latin Link fits

Latin Link is a non-custodial liquidity aggregator interface, not a wallet and not a custodian. You connect a compatible self-custody wallet and authorize transactions there. Latin Link uses OpenOcean routing to consider eligible liquidity sources; the displayed route is a time-sensitive estimate, not a guarantee of the best possible execution.

04/Related guides

Keep comparing routes and decisions.

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What is DeFi and how does an on-chain swap work?

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Self-custody vs custody

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What is DeFi liquidity?

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Slippage, price impact and gas

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05/FAQ

Common questions about this topic.

Is an aggregator a DEX?

It can provide a DEX-like swap interface, but its distinct role is to search or compose execution across eligible liquidity sources.

Does an aggregator hold my crypto?

Not necessarily. A non-custodial aggregator prepares routes while the connected wallet signs; always verify the specific service.

Is the cheapest quoted rate always the best?

No. Compare final output after price impact, fees and gas, as well as route and contract risk.

Do DEX swaps require gas?

On-chain transactions require the selected network's native fee asset, although some designs may sponsor or abstract fees.

Is Latin Link a wallet?

No. Latin Link is a non-custodial liquidity aggregator interface. A compatible external wallet manages your keys and signs the transaction.

06/Sources and limits

Limitations

This guide is educational and is not financial, investment, legal or tax advice. Tokens, smart contracts, approvals, wallets and blockchain networks involve risks, including irreversible loss. Verify current product support and transaction details before signing.

Ready to review a live route?

Open the swap and review the network, tokens, amount and slippage. When shown, compare the route, costs and minimum received; confirm everything in your wallet before signing.