Definition
Centralized Exchange. A cryptocurrency trading platform operated by a company that holds customer funds and matches buyers with sellers. Examples include Coinbase, Binance, and Kraken.
Why It Matters
Most crypto beginners start on a CEX because they're easy to use. However, CEXs hold your private keys — meaning the exchange controls your funds, not you.
Example
A beginner signs up on Coinbase (a CEX), verifies their identity, and buys $200 of Bitcoin through a simple interface — but the coins are held in Coinbase's custody.
Related Terms
DEX
Wallet
Seed Phrase
KYC