TRADING & AMMS
CEX (Centralized Exchange)
Definition
A centralized exchange is operated by a company that controls user funds and facilitates trading through traditional order books, requiring users to deposit funds and create accounts.
Example
Example
Binance, Coinbase, and Kraken are major CEXs where you deposit funds to trade with better liquidity and user experience.
Risks to Consider
Risks
- Counterparty risk
- Regulatory risk
- Account freezing