A Centralized Exchange (CEX) is a platform that facilitates the buying, selling, and trading of cryptocurrencies, operating as a third-party intermediary between buyers and sellers. Users of CEXs trust the platform to manage their assets, which are stored in exchange-controlled wallets.
Centralized Exchanges play a key role in the cryptocurrency market, offering user-friendly interfaces, liquidity, and a wide variety of trading pairs. Notable examples include Binance, Coinbase, and Kraken, These platforms are known for their enhanced trading features such as margin trading, futures, and fiat-to-crypto transactions. However, their centralized nature raises concerns regarding security, privacy, and control over one's digital assets, leading to the exploration of decentralized alternatives by the crypto community.
