What Are Centralized Finance And How They Work?

Centralized finance is the system that was initially used for trading cryptocurrencies before the introduction of Decentralized Finance (DeFi). It is still applied but has been overshadowed by the high-growing DeFi. In centralized finance, a crypto exchange handles all crypto trading. In this case, the owners of the assets do not own the private keys that give access to the wallet. The main motive of both DeFi and CeFi platforms is to facilitate the easy use of cryptocurrencies.