📚 Crypto FAQ: What is a CEX (Centralized Exchange)?

[cryptohog]

Whether you're new to crypto or just tired of nodding like you know what “CEX” means — don’t worry, we’ve got you covered.

What Is a CEX?
A Centralized Exchange (CEX) is a platform where you can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, or Solana — all managed by a company that handles your funds and trades. Think of it as the crypto version of a stockbroker, but with digital assets.

Popular CEXs include:

Binance

Coinbase

Kraken

OKX

Bybit

How Does a CEX Work?

You sign up (often with ID for KYC/AML compliance).

Deposit money via bank transfer, card, or crypto.

Trade assets using market or limit orders.

Withdraw to a private wallet — or keep funds on the platform (more on that below 👇).

️ CEX Pros & Cons:

Pros:

Beginner-friendly UX

High liquidity (easy to buy/sell quickly)

Supports fiat (USD, EUR, etc.)

Customer support & apps

Cons:

You don't hold the keys = not your crypto

Susceptible to hacks or mismanagement

Often regulated = may freeze assets or require KYC

Downtime or outages during market spikes

🧠 Reminder: "Not your keys, not your coins."

Is a CEX Safe?
Generally yes, but with caveats. Top-tier exchanges invest heavily in security and insurance — but they’re still centralized, meaning your assets are only as safe as their systems and policies.

Use 2FA, strong passwords, and don’t leave large amounts on an exchange unless you're actively trading.

Quick Tips:
• Use CEXs to onboard into crypto (buy/sell with fiat).
• Withdraw to a self-custody wallet (like MetaMask or Ledger) for long-term storage.
• Keep an eye on fees, trading volume, and regulatory status in your region.

Got more questions about CEXs, DEXs, or how to trade smart? Drop them below and we’ll expand this FAQ!
#CryptoFAQ #CEX #CentralizedExchange #CryptoTrading #NotYourKeysNotYourCoins #Binance #Coinbase #Web3Education

[jacson4]

CEX platforms like Binance, Coinbase, and Kraken have played a massive role in onboarding millions of people into the crypto world. Their user-friendly interface, fiat on-ramps, and high liquidity make them the “gateway” for most new investors.But what this post smartly points out is that while CEXs are convenient, they also require users to trust the platform with their assets. That trust has been shaken more than once (FTX, anyone?). This is why education like this is so important — knowing what a CEX is helps users make smarter, safer decisions.

[Nahid10]

A Centralized Exchange acts like a crypto bank — it handles custody, orders, matching, and more. That’s both its strength and its risk. While it offers speed, support, and security features, it also means you're giving up full control of your keys.Posts like this are crucial because too many new users jump into crypto without understanding who actually controls their assets. “Not your keys, not your coins” isn’t just a slogan — it’s survival wisdom in this space. Great breakdown! 🧠️