Centralized Exchanges (CEX)

A centralized exchange (CEX) is a platform operated by a company that acts as an intermediary between buyers and sellers. CEXes hold customer funds in custodial wallets and run an internal order book to match trades. They typically offer higher liquidity, faster execution, fiat currency support, and advanced features such as margin trading and futures contracts. Account creation usually requires identity verification (KYC). Well-known centralized exchanges include Binance, Coinbase, and Kraken. While convenient and feature-rich, CEXes require you to trust the platform with custody of your assets.