Centralized Exchange (CEX)

A Centralized Exchange (CEX) is a cryptocurrency trading platform operated by a company that acts as an intermediary between buyers and sellers. Users deposit their funds into the exchange's custody, and the platform matches orders through its internal systems. Popular CEXs include Binance, Coinbase, and Kraken. While CEXs offer high liquidity and ease of use, users must trust the exchange to safeguard their funds, unlike decentralized exchanges where users retain control of their keys.