Whether we are talking about commodities, stocks or crypto, bitcoin owners has to start somewhere, centralized cryptocurrency exchanges. In this article, we’ll discuss centralized exchanges, the advantages, disadvantages and lists of CEX.
What are centralized cryptocurrency exchanges?
Centralized cryptocurrency exchanges are online trading platform and apps where you can buy and sell cryptocurrencies or digital currencies for other assets, such as fiat money or other digital currencies. They function as a trusted third-parties in trade, and often act as custodians by storing and securing your funds. For most bitcoin owners, the CEX is one of the most important means for transacting cryptocurrencies.
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This can cause government to freeze and/or seize user funds and force the exchanges’ parent companies to reveal their customers’ personal information. CEX users do not actually exchange crypto or fiat currencies with each other.
Lists of Centralized exchanges
The exchange is the largest and most traded exchange in terms of trading volume, offering more than 1000 cryptocurrencies.
Binance is popular because of its low transaction fees, high liquidity, and additional discount if you pay in the native BNB token.
Kucoin is easy to use for novice investors and support over more than 500 projects with nearly 1000 trading pairs. The exchange is an online platform and can be access via desktop as well as on the Kucoin app on both Android and IOS.
Crypto.com features it own ‘exchange’ to allow its customer all over the world to trade a variety of cryptocurrencies on a secure crypto platform using its own web interface. Crypto.com is regulated and the first cryptocurrency exchange to obtain security certificate.
Advantages of CEX
- User-friendly: Centralized exchanges offers user-friendly exchange platform for beginners investors to buy and sell cryptocurrencies.
- Liquidity: CEX provide high liquidity
- Fast Speed: CEX provide fast trading transaction speed
- Reliable: Centralized exchange are reliable for their extra layer of security when it comes to transactions and trading.
Disadvantages of CEX
- No control of private key: In centralized exchanges, you don’t have control over your private key, this means that your private key is entrusted with the centralized exchange. If the CEX is down, you can’t have access to recover your fund.
- Fake trading volume: Most centralized exchange fake their own trading volume to trick users investing their fund with them.
- Hacking risk: Centralized exchange are prime target to hackers for the large volume of cryptocurrencies they hold.
Centralized exchanges are marketplaces for tokens and coins where you can buy and sell cryptocurrencies for fiat money or other digital currencies. They function as a trusted third-party in trade. There are more than 100 different CEX in the world, not all can be reliable, please do your own research before investing your fund.Make sure that the CEX you are trading with is secure and reliable.