CEX (Centralized Exchange)

Exchange operated by a company that custodies user funds.

CEXs are run by businesses with order-matching engines, fiat rails, customer support and (usually) regulatory licenses. Users deposit funds into the exchange's wallets and trade IOUs internally. Examples: Binance, Coinbase, Kraken, OKX, Bybit.

CEXs offer deeper liquidity, fiat on-ramps and a familiar UX. The trade-off is custodial risk — the exchange could be hacked, freeze withdrawals or fail outright.