TradingBeginner

Centralized exchange

A trading platform run by an organization that manages accounts, orders and exchange services.

PLAIN-ENGLISH DEFINITION

In more detail

A CEX usually provides an account interface for deposits, trading and withdrawals. Many also custody deposited assets, so trading balances sit within the operator's system rather than giving each customer direct signing control. The operator's security, solvency and withdrawal policies become part of the user's access to those funds.

IN THE WILD

How you might use it

You trade BTC inside an exchange account; the balance updates in the platform's system while the operator handles custody.

Centralized exchange: four customer account terminals connect to one operator tower containing internal order and balance records.
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WORD NOTES
Short name
CEX

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