What it means
Centralised exchange: a company that runs a trading platform and holds your money while you use it, such as Coinbase or Binance.
It's easy to use and links to your bank, but your balance is held by the exchange, like a custodial wallet.
How it works
Many people buy on a CEX and then move to a wallet they control.
Related terms
| Term | What it means |
|---|---|
| DEX | Decentralised exchange: smart contracts that let you trade tokens straight from your own wallet, with no company holding your money. |
| Custodial wallet | A wallet where a company holds the keys and your money for you, the way an exchange or a bank app does. |
| Order book | A list of buy and sell offers at different prices, matched against each other, as on a stock exchange. |
This glossary explains terms in general. It isn't investment, tax or legal advice.