A Centralized Exchange (CEX) is a trading platform where all operations, including order matching, custody of funds, and transaction processing, are managed by a central authority. These exchanges often provide high liquidity and user-friendly interfaces.
While CEXs offer convenience and efficiency, they also carry risks such as potential security breaches and loss of control over private keys.
Investors typically use CEXs for active trading, though many are exploring decentralized alternatives for enhanced security.
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