CEX (Centralized Exchange)
A CEX is a traditional cryptocurrency exchange run by a company (like Binance, Coinbase, or Kraken) where you deposit funds and they facilitate trades on their platform.
Understanding the Concept
CEXs are where most people start in crypto because they're familiar—like using a stock broker. They offer high liquidity, fast execution, fiat on-ramps, and customer support. The downside is trust. You're giving your crypto to a third party. If they get hacked (Mt. Gox, QuadrigaCX) or go bankrupt (FTX), your funds can disappear. "Not your keys, not your coins" exists because of CEX failures. They also require KYC (identity verification), collect your data, and can freeze your account. For large trades, fiat conversion, or beginner-friendly interfaces, CEXs are still king. But never store long-term holdings on them.
Real-World Example
You wire $10,000 to Coinbase, buy Bitcoin, and immediately withdraw it to your hardware wallet. You used the CEX as a gateway, not a bank. Smart.
How Strykr Helps
Strykr tracks CEX developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
Try Strykr Free