A CEX (Centralized Exchange) is a cryptocurrency trading platform operated by a company that acts as an intermediary between buyers and sellers. Users deposit funds with the exchange, which holds custody of assets.
Features of centralized exchanges include high liquidity and trading volumes, user-friendly interfaces, fiat currency on/off ramps, customer support services, and advanced trading features like margin and futures.
Popular CEXs include Binance, Coinbase, Kraken, and KuCoin. Each offers different features, fee structures, and supported cryptocurrencies.
Risks of using CEXs include counterparty risk (exchange hacks or insolvency), KYC requirements reducing privacy, and potential for trading restrictions or account freezes.