Centralized exchange

How it is used

Used when comparing with decentralized exchanges. A CEX offers customer support, bank deposits and familiar order types, but users trust the company with their assets. Licensing, regulation and proof of reserves are key topics for centralized exchanges.

Example sentences

1. Most new users buy their first crypto on a centralized exchange.

2. After the collapse, many traders moved funds from centralized exchanges to their own wallets.

Common collocations

• trade on a centralized exchange
• CEX listing
• licensed centralized exchange
• proof of reserves

Related terms

• exchangeA platform where people buy, sell and swap cryptocurrencies, either for other crypto or for traditional money. Some are run by a company, and some work entirely through smart contracts.
• decentralized exchangeAn exchange that runs on smart contracts, letting users trade directly from their own wallets without handing their funds to a company. Often shortened to DEX.
• custodial walletA wallet in which a company, such as an exchange, holds the private keys for you. It is easier to use and recover, but you depend on that company to give you access to your funds.
• KYCShort for know your customer: the checks a regulated company carries out to confirm who its customers are, usually by collecting an ID document, a selfie and an address.
• order bookA live list of all open buy and sell orders for a trading pair, sorted by price. It shows what buyers will pay, what sellers want and how much is available at each price level.

More terms: Exchanges & Trading

• market cap
• trading pair
• volatility
• fiat
• liquidity
• spot trading
• leverage
• liquidation
• slippage