crypto-exchange-cex
A platform that facilitates the buying and selling of cryptocurrencies, managed by a central organization.
A Centralized Exchange (CEX) acts as an intermediary (like a traditional stock exchange) to match buyers and sellers. It holds customers' funds in its own wallets (custodial) and requires users to undergo KYC (Know Your Customer) verification. Examples include Binance, Coinbase, and Kraken. CEXs offer high liquidity, fast execution, and fiat-to-crypto on-ramps.
graph LR
Center["crypto-exchange-cex"]:::main
Rel_cex["cex"]:::related -.-> Center
click Rel_cex "/terms/cex"
Rel_proof_of_stake["proof-of-stake"]:::related -.-> Center
click Rel_proof_of_stake "/terms/proof-of-stake"
Rel_singularitynet["singularitynet"]:::related -.-> Center
click Rel_singularitynet "/terms/singularitynet"
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🧠 Knowledge Check
🧒 Explain Like I'm 5
It's like a digital stock market for crypto. You give them your money, they hold it for you, and when you want to buy [Bitcoin](/en/terms/bitcoin), they find someone who wants to sell it to you and take a small fee for the service.
🤓 Expert Deep Dive
CEXs use an off-chain Order Book to match trades instantly. The key risk is 'counterparty risk' or custodial risk—if the exchange gets hacked or goes bankrupt (e.g., FTX), users may lose all their funds. 'Not your keys, not your coins' is the guiding mantra here.