Centralized Exchange (CEX)

A Centralized Exchange (CEX) acts as an intermediary platform that allows users to buy, sell, and trade cryptocurrencies and digital assets. Unlike decentralized exchanges (DEXs), CEXs facilitate transactions through a company or organization that maintains a centralized order book and custody of users' assets. They often offer higher liquidity and faster transactions, but require users to trust the exchange with their funds, akin to traditional financial institutions.