centralized exchange

Phonetic: /ˌsɛntrəˈlaɪzd ɪkˈstʃeɪndʒ/, /ˈsiːˈɛks/

Part of Speech: noun

Category: To be determined

A centralized exchange (CEX) is a cryptocurrency exchange that is operated and controlled by a centralized entity. In a CEX, the exchange company or organization acts as an intermediary between buyers and sellers, holding and managing the assets on behalf of its users.

Definition source: Consensys Software Inc., A Blockchain Glossary for Beginners

Sample sentence

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Additional definitions

Understand the world of centralized exchanges, traditional crypto marketplaces known for high liquidity, advanced trading tools, and risk considerations.

Source

Extended definition

Centralized exchanges typically offer a wide range of trading pairs, with many popular cryptocurrencies available for trade. They also usually have high liquidity and offer advanced trading features such as margin trading, order types, and charting tools. However, centralized exchanges also have several drawbacks. They are often targeted by hackers, as the centralized nature of the exchange makes them a single point of failure. They also require users to trust the exchange to hold their funds securely and execute trades fairly, which can be a source of concern for some users.

This word came from... the ether

Date first recorded: 2025-01-31

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