Glossary
What is a centralised exchange?
In one sentence
A centralised exchange (CEX) is a company that runs a crypto marketplace and holds customer funds — the familiar, account-based way to buy crypto.
A centralised exchange operates much like a broker. You create an account, complete identity verification, deposit money, and trade using the platform’s order book. The company custodies your assets and maintains an internal ledger of what each customer owns.
This makes them easy to use, generally liquid, and usually the only practical route from ordinary currency into crypto. Support exists, mistakes can sometimes be fixed, and the interface is designed for people rather than for developers.
The trade-offs are custody and permission. The company holds your keys, can freeze accounts, and can fail — as several large ones have. It also requires identity documents, which some users object to but which is a legal requirement for handling conventional money in most jurisdictions.
For example
If you bought crypto with a debit card, you almost certainly used a centralised exchange.