A CEX (Centralized Exchange) is a cryptocurrency trading platform operated by a central authority or company. Users deposit funds into the exchange's custody, and the exchange facilitates trades using its own order book and matching engine.
Popular CEXs
Major centralized exchanges include Binance, Coinbase, Kraken, OKX, and Bybit. These platforms typically offer high liquidity, user-friendly interfaces, fiat on-ramps, and customer support.
Advantages
Ease of Use: Intuitive interfaces suitable for beginners.
Liquidity: High trading volumes ensure tight spreads.
Fiat Support: Most CEXs allow deposits in traditional currencies.
Risks
Custodial Risk: Users don't control their private keys ("not your keys, not your coins").
Regulation: CEXs are subject to government regulations and can freeze accounts.
Hacks: Centralized platforms are attractive targets for hackers, as seen with the Mt. Gox and FTX collapses.