--- title: "Centralized Exchange (CEX)" url: "https://www.unknowngravity.com/en/glosario/exchange-centralizado-cex" site: Unknown Gravity published: "2025-06-07T15:33:04+00:00" modified: "2026-07-15T10:51:28+00:00" language: en-US description: "Centralized Exchange (CEX) is a digital platform for the exchange of cryptographic assets in which a centralized entity acts as an intermediary and guardian of user funds." section: "Home > Centralized Exchange (CEX)" --- # Centralized Exchange (CEX) GLOSSARY · BLOCKCHAIN & WEB3 A CEX holds your funds and matches orders on its own book. What it offers compared with a DEX, and why the EU has required a CASP licence since 30-12-2024. WHAT IS IT? · FOR DUMMIES **Centralized exchange**, or **CEX**, is a website or application where you can buy and sell cryptocurrency as if it were a digital bureau de change. But instead of doing it directly with someone else, it's the exchange company that keeps your money and does the operations for you. It's easy to use, but you need to trust that company so it doesn't fail you. WHAT IS IT? · PRO **Centralized Exchange (CEX)** is a digital platform for the exchange of cryptographic assets in which a centralized entity **acts as an intermediary and guardian** of user funds. Instead of making exchanges directly between peers (as in a DEX), users of a CEX deposit their cryptocurrency or fiat money in accounts controlled by the exchange, which facilitates transactions through its own internal order matching engine (**Order Book**). CEXs offer significant advantages such as **high liquidity**, **intuitive interfaces**, **support for multiple payment methods**, and advanced trading tools. They also usually provide access to complementary services such as staking, futures, derivatives, loans, launchpads or crypto cards. Popular examples include **Binance, Coinbase, Kraken, Bybit, or Bitfinex**. However, when trading within a CEX, users **they don't have direct control over their private keys**, which implies that **they delegate the custody of their funds** to the company. This introduces risks such as hacks, account freezing, operational failures or unilateral regulatory decisions. In addition, CEXs must comply with policies **KYC/AML** and other national or international regulations, which may limit user access or privacy. From a technical and economic perspective, CEXs are essential for **connection between the crypto ecosystem and the traditional financial system**, acting as entry and exit ramps (fiat ↔ crypto), and providing reference prices and liquidity on a global scale. ## 01 / Key points - It is a platform where a company intermediates the purchase and sale of cryptocurrencies - Act as the trustee of the funds and manages the pairing of orders - It provides high liquidity, execution speed and usability for the user - Requires compliance with KYC/AML regulations - It does not grant direct control over the user's private keys ## 02 / Advantages - **Easy to use and accessible** for all types of users - **High liquidity and trading volume** - **Support for multiple assets, fiat and payment methods** - **Additional integrated services**: staking, earn, advanced trading - **Technical support, mobile apps and an optimized experience for beginners** ## 03 / Disadvantages - **Custody risk**: the user does not have their private keys - **Potential for hacks or loss of funds due to internal failures** - **Dependency on a centralized entity and its regulation** - **Increased exposure to restrictive measures (freezes, blockages, etc.)** - **Lower privacy compared to decentralized platforms** RELATED CONCEPTS [Decentralized Exchange (DEX)](/en/glosario/exchange-descentralizado-dex) [Exchange (Cryptocurrency Exchange)](/en/glosario/exchange-intercambio-de-criptomonedas) [Cryptocurrency](/en/glosario/criptomoneda) [Wallet](/en/glosario/wallet) [KYC (Know Your Customer)](/en/glosario/kyc-know-your-customer) [Self-custody](/en/glosario/auto-custodia-self-custody) [CASP (Crypto-Asset Service Provider)](/en/glosario/casp-proveedor-servicios-criptoactivos) KEEP LEARNING [How to protect your digital assets in the cryptocurrency world](/en/articulos/como-proteger-tus-activos-digitales-criptomonedas) [What Do Blockchain Developers Do?](/en/articulos/que-hacen-los-desarrolladores-blockchain) [Exploring the most popular blockchain-based cryptocurrencies.](/en/articulos/explorando-las-criptomonedas-mas-populares-basadas-en-blockchain) [Understanding Crypto Market Cycles](/en/articulos/comprendiendo-los-ciclos-del-mercado-cripto) [How does Trump's victory influence the market?](/en/articulos/como-la-victoria-de-trump-influye-en-el-mercado) RELATED SERVICES [Crypto Payment Gateway](/en/servicios/pasarela-de-pagos-crypto) [Blockchain consulting for companies](/en/servicios/consultoria-blockchain) [Blockchain consulting for companies](/en/servicios/asesoria-blockchain) [Digital Identity Management](/en/servicios/blockchain-para-gestion-de-identidades-digitales) [Tokenomics](/en/servicios/tokenomics) [Full glossary](/en/glosario) This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).