Centralized Exchange (Cex)
| A centralized exchange is a cryptocurrency exchange platform that is operated by a centralized owner. The owner of a centralized exchange controls the platform and can decide what assets to list, when to list them, and how to manage the platform. A centralized exchange is often the most convenient way to buy and sell cryptocurrencies, as it offers a single platform for users to buy and sell from. However, centralized exchanges come with a number of risks. The most significant risk is that the centralized owner of the platform can manipulate the platform to benefit themselves or harm users. For example, the owner of a centralized exchange could list a new asset on the platform and then sell it to users at an inflated price. Or, the owner could delist an asset, preventing users from selling it and causing the price to crash. Centralized exchanges also typically charge higher fees than decentralized exchanges. |
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