Overview
CEXs are the most common entry point for new crypto users. They function similarly to traditional stock brokerages, providing a user-friendly interface, high liquidity, and customer support.
Key Characteristics
- Custodial: The exchange holds your private keys and manages your funds.
- KYC/AML: Users must provide identification to comply with regulations.
- Order Book: Uses a matching engine to connect buyers and sellers.
Examples
Binance, Coinbase, and Kraken are leading centralized exchanges.