Centralized Exchange

A digital platform that facilitates the trading of cryptocurrencies and other digital assets, where transactions are managed and executed by a central authority or entity.

What You Need To Know

Centralized exchanges are essential on-ramps for newcomers to cryptocurrency, bridging the gap between traditional finance and digital assets. However, their centralized nature raises questions about trust, security, and alignment with blockchain's decentralized principles. As such, they coexist with decentralized exchanges (DEXs), which offer alternative trading models without intermediaries.