It's like a bank, but for cryptocurrency. You give them your cryptoassets (such as Bitcoin or Ethereum), and they keep them, move them or give you interest for having them there. You don't need to know technology or manage private keys.

You trust a company (like Binance or Coinbase), which takes care of everything: changing your coins, storing them, lending them or helping you use them. It's easy and fast, but you depend on them.

CeFi (Centralized Finance) refers to a model of financial services based on cryptocurrencies but managed by centralized entities. These platforms act as intermediaries and guardians of funds, offering products and services similar to those of traditional banking, but on digital assets.

Typical examples of CeFi platforms include Binance, Coinbase, Crypto.com, Nexo, or BlockFi, among others.

The main features of CeFi are:

• Asset custody: the user hands over control of their cryptocurrencies to the platform.
• Integrated financial services: asset exchange (trading), interest accounts (staking/lending), crypto cards, secured loans, etc.
• Simplified experience: accessible interfaces and customer support, ideal for non-technical users.
• Regulatory Compliance: they tend to apply KYC/AML policies and operate under licenses in different jurisdictions.

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