What is the definition of CEX in the context of digital currencies?

3 answers

• Azim0ntApr 25, 2021 · 5 years ago
  CEX stands for Centralized Exchange. It refers to a digital currency exchange that is operated by a central authority or organization. In a CEX, users trade digital currencies through a centralized platform, where the exchange acts as an intermediary and holds custody of the users' funds. Examples of CEXs include Binance, Coinbase, and Kraken. CEXs are known for their high liquidity and ease of use, but they also come with certain drawbacks such as the need to trust the exchange with your funds and potential security risks.
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• Dorra MuhammadMay 01, 2021 · 5 years ago
  CEX, short for Centralized Exchange, is a type of digital currency exchange where transactions are facilitated through a centralized platform. In a CEX, users trade digital currencies with each other under the supervision and control of the exchange operator. This means that the exchange acts as a middleman, matching buy and sell orders and holding custody of the users' funds. CEXs are popular among beginners and casual traders due to their user-friendly interfaces and wide range of available cryptocurrencies. However, they are often criticized for their lack of transparency and potential vulnerability to hacking attacks.
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• uday_bushettiwarApr 05, 2023 · 3 years ago
  CEX, which stands for Centralized Exchange, is a term commonly used in the digital currency industry to refer to exchanges that operate under a centralized model. In a CEX, users trade digital currencies on a platform controlled by a central authority, such as a company or organization. This means that the exchange holds custody of the users' funds and facilitates the matching of buy and sell orders. CEXs are often preferred by traders who value convenience and liquidity, as they offer a wide range of trading pairs and typically have higher trading volumes compared to decentralized exchanges (DEXs). However, CEXs also face criticisms for their potential security risks and the need to trust the exchange with your funds.
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