CEX stands for Centralized Exchange. A Centralized Exchange is a crypto currency exchange that allows you to buy and sell coins but keeps custody of your coin in a secure wallet.
This is unlike Decentralized Exchanges (DEX) where your exchange is done in a P2P manner and no one keeps custody of your coins.
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Is a Centralized Exchange Safe To Use?
Yes a CEX especially the popular ones are safe to use for trading but not safe to use as a wallet.
It is not advisable to permanently leave your coins on a centralized exchange. The safest way to store your coins is in your wallet, which you own the private key to.
There is a popular saying “Not your keys, not your coins”. That being said, a centralized exchange especially a popular one is quite safe to use.
What are The Most Popular CEX To Buy Coins?
In no particular order, some of the best centralized exchanges to use are:
Coinbase
Founded in 2012 by Brian Armstrong, Coinbase is one of the strongest, most popular and safe exchange to use for exchanging your coins. It has been around longer than most other platforms.
Binance
Binance founded by Changpeng Zhao in July 2017, this exchange has quickly grown to be one of the most used platforms for coin exchange.
KuCoin
If you are looking for another great exchange platform besides the 2 above, then Kucoin is another great option. Many have given their approval of this platform as one of the easiest to use among other centralized exchanges.
Finally, the idea of blockchain is decentralization. So it is safe to say that blockchain technology approves more of DEX then CEX. The question is: Will Centralized Exchanges cease to exist in the future? Will Decentralized Exchanges take over the Centralized Exchanges? We will find out in the future.
