DeFi 10102 September 2021

What Is A Centralized Exchange (CEX)?

Centralized Exchange

Summary

  • CEX is a crypto trading platform
  • Users can trade crypto assets for fiat currency or other crypto assets
  • Centralized exchanges are cryptocurrency trade intermediaries
  • CEXs ensure fair market play for their users
  • More than 90% of all digital assets are traded on centralized exchanges

A centralized exchange is a cryptocurrency trading platform where users can buy or sell their crypto assets in FIAT currency or other digital assets such as ETH or BTC.

Centralized exchanges (CEX) function as trusted cryptocurrency trading intermediaries and act as asset custodians for cryptocurrency investors. Trading on a leading centralized exchanged protects the investor from unfair market pricing and offers security for their investment. They also ensure you comply with trading regulations and get consumer protection ad you access different digital assets.

By December 2020, at least 95% of all digital assets are traded on centralized exchanges, representing more than $220 billion worth of transactions every month.

Kibet Elikana
Write a comment