Trading & Markets
Also: CEX, centralized exchange
Centralized Exchange CEX
A cryptocurrency exchange operated by a company that holds user funds in custody.
A centralized exchange is a company-operated platform where users deposit funds into exchange-controlled wallets to trade. CEXs offer higher liquidity, faster execution, and easier fiat on-ramps than decentralized alternatives, but introduce counterparty risk — users must trust the exchange to hold funds honestly. The FTX collapse in 2022 illustrated the catastrophic failure mode when that trust is violated.
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