A CEX can simplify access, trading, and account recovery, but it centralizes credentials, custody, and operational decisions. Risk is not identical across platforms and does not mean an incident will happen.
Main risks
- Third-party custody and dependence on internal controls.
- Temporary account reviews, restrictions, or limits.
- Password theft or reuse and loss of a second factor.
- Phishing through fake domains, apps, or messages.
- Withdrawal pauses caused by maintenance, security, networks, or compliance.
Practical safeguards
- Use a unique password and phishing-resistant authentication.
- Enter through a verified bookmark and distrust links received in messages.
- Enable access and withdrawal alerts; review sessions and devices.
- Keep only amounts that fit your use and risk tolerance in third-party custody; this is not financial advice.
No label guarantees absolute safety
Evaluate each service's terms, controls, and record. Neither centralized nor decentralized systems remove every risk.
Moving to self-custody adds different duties: protect the recovery phrase, verify addresses, and understand that confirmed transactions are generally irreversible.