Understanding the CEX

---

Just as a DEX allows you to trade tokens from blockchains, a CEX acts in a similar manner. With a CEX, though, you will need to provide KYC information. CEXs can act as an on-ramp from fiat currency to tokens as well. A CEX also lists coins across several blockchains. This way, you don’t need several wallets to keep track of your investments. They can act as an all-in-one investment hub. Unlike a DEX, a CEX holds all your tokens and fiat. When you make a trade order, it goes into their order books and is not truly an on-chain trade. This way, they can keep the trading fees low. A CEX can also contain more features and have an easier-to-navigate interface than some DEXs. This makes them more appealing to new investors in crypto. When using a CEX, keep in mind the saying "not your keys, not your crypto." If something happens to the CEX, such as a hack, you could lose your tokens. Below are some major CEXs and links to their website.