CEX means centralized exchange. The company maintains the infrastructure, records each account balance, and processes orders within its system. Binance, Coinbase, Kraken, and Bitso are recognizable examples; naming them identifies the model and is not a recommendation.
How it works
- You create an account and protect access with credentials.
- You deposit crypto or, when the service and region allow it, fiat funds.
- The platform reflects an internal balance and executes buys, sells, or conversions.
- To hold the assets in your own wallet, you request a withdrawal to a blockchain address.
Illustrative example
- You deposit 100 units of a token into the CEX.
- Your account shows that balance and you use part of it in an internal trade.
- If you want self-custody, you request withdrawal of the result to your wallet.
Benefits and responsibilities
Account recovery and integrated trading can be practical. In return, you depend on the platform's custody, availability, rules, and controls, and you must secure your account.
A CEX balance is not the same as controlling the keys to your own wallet. Review terms, assets, networks, and limits before depositing or trading.