Centralized Exchange (CEX)

Centralized Exchange (CEX) refers to a platform where users can buy, sell, and trade various cryptocurrencies. These exchanges are run by a centralized authority, meaning that they have full control over the platform’s operation and users’ funds.

In a CEX, users need to create an account and deposit their funds into the exchange’s wallet in order to trade. The exchange acts as an intermediary, matching buy and sell orders, and facilitating the transactions.

One of the main advantages of using a CEX is that they typically offer a wide range of cryptocurrencies to trade, as well as advanced trading features such as margin trading and stop-loss orders.

However, CEXs are also vulnerable to security breaches and hacks, as they store large amounts of cryptocurrencies in a single location. Additionally, users are required to trust the exchange with their funds, as they do not have control over their private keys.

Overall, centralized exchanges provide a user-friendly and convenient way to trade cryptocurrencies, but users should be aware of the risks involved.