A centralized exchange (CEX) is a platform where users can buy, sell, and trade cryptocurrencies. These exchanges act as intermediaries, facilitating transactions between buyers and sellers. Users create accounts, deposit funds, and execute trades through the platform. CEXs manage the entire trading process, ensuring smooth and efficient operations.

Unlike decentralized exchanges (DEXs), which allow peer-to-peer trading without intermediaries, CEXs control user funds and require identity verification. This centralized control enables features like customer support and advanced trading tools but also introduces certain risks, such as potential security breaches.