Introduction: Defi exemplifies decentralized finance that is capable of reshaping the financial landscape. DeFi operates on a secure distributed ledger used for smart contracts and eliminates the need for financial intermediaries by providing a secure digital wallet for funds exchange like cryptocurrencies. Aim: DeFi encompasses financial standards based on three pillars, i.e., smart contract, permissionless and trustless system. The study demonstrates the basis of DeFi applications as well as the difference between centralized and decentralized finance system. It also provides insight into the trading of cryptocurrencies on centralized and decentralized exchanges. Method: The secondary data extracted from Defi Exchanges, publications, reports and regulations is utilized. Findings: DeFi applications are expanding into various categories of activities via decentralized apps (dApp) including finance, gaming, social, Metaverse, technology, art and collectibles. Based on the permissionless, non-custodial, composability and early mover advantage of DEXs, users can lose their money permanently if they transmit their coins to the incorrect network or inappropriate address or execute a fraudulent contract that drains their digital wallet and CEXs are regulated by central authority with friendly navigation features. Originality and value: The raising volume of trade of cryptocurrency highlight the importance of proper regulation and selection of best DEX or CEX which further depends upon solely on the needs and preferences of trader. The study provide fruitful insight on it.