CEX (Centralized Exchange)
A crypto trading platform run by a company, like a regular stock exchange. You deposit your money and they hold it while you trade.
Example
Using Coinbase or Binance to buy Bitcoin with your bank account. The exchange holds your crypto until you withdraw it.
Tools & Protocols
⚖️CEX vs DEX
| Feature | cex | dex |
|---|---|---|
| Account Required | Yes, with ID verification | Just a wallet |
| Fiat Support | Bank transfers, cards | Crypto only |
| Customer Support | Available | None |
| Asset Safety | Trust the exchange | Trust the code |
| Regulation | Government regulated | Unregulated |
⚠️Risks & Warnings
- •Exchange can freeze or seize your funds
- •Hacks have stolen billions from exchanges (Mt. Gox, FTX)
- •Exchanges can go bankrupt and you lose everything
- •Your trading data is tracked and reported for taxes
- •Withdrawal limits and delays during high demand
🚀Getting Started
- 1Choose a reputable, regulated exchange (Coinbase, Kraken)
- 2Complete identity verification (usually takes 1-3 days)
- 3Enable 2FA with an authenticator app, not SMS
- 4Start with small amounts to test withdrawals
- 5Don't leave large amounts on the exchange long-term