Intro to Centralized Exchanges (CEX)
Intro to Centralized Exchanges (CEX)
Centralized Exchanges, often abbreviated as CEX, are online trading platforms that facilitate the buying and selling of cryptocurrencies through a centralized organization. These platforms act as intermediaries between buyers and sellers, maintaining custody of users’ assets and handling trade execution.
How CEX Works
When you use a CEX like Exness or Binance, you deposit your funds into the exchange’s wallet. The platform then provides an interface for placing buy/sell orders, manages liquidity, matches trades, and charges a small fee for each transaction.
Security and Custody
CEX platforms store your crypto in custodial wallets. While this can be convenient for beginners, it also means the platform holds your private keys. Therefore, it’s crucial to use exchanges with strong security practices, insurance coverage, and a solid reputation.
Benefits of Using a CEX
- Easy onboarding and user-friendly interface
- High liquidity for most assets
- Fiat deposit/withdrawal options (e.g., credit card, bank)
- Professional support and account recovery
Things to Watch Out For
- You don’t control your private keys
- Vulnerability to hacks or government regulations
- Platform downtime during high traffic
Popular Centralized Exchanges
Some well-known and trusted CEX platforms include:
- Exness – Excellent for Forex & crypto hybrids
- Binance – High liquidity, low fees, wide selection
- Coinbase – Great for US users and crypto newcomers
- Kraken – Secure and professional-grade trading
???? Tip: Always enable two-factor authentication (2FA) on your exchange account and never reuse passwords across platforms.