CEX
A centralised exchange — a company-operated platform where users deposit funds and trade via a traditional order book.
A Centralised Exchange (CEX) is an exchange operated by a company that takes custody of users' assets and matches buy/sell orders via a central order book. Examples include Coinbase, Binance, Kraken, and OKX. CEXs offer fiat on-ramps, deep liquidity, and customer support.
The main risks of CEXs are counterparty and custodial risk: the exchange holds your funds, and its insolvency (as seen with FTX in 2022), hack, or regulatory action can result in loss. The phrase 'not your keys, not your coins' reflects this concern.
Regulatory-compliant CEXs are typically required to complete KYC (Know Your Customer) verification. This makes them more accessible to institutional investors but less private than DEXs.