Get to Know Your Exchange

A CEX is managed by a company that oversees trades, stores funds, and maintains the platform. It’s called “centralized” because one organization runs the system.

Security is not just a feature, it’s the backbone of trust in centralized exchanges. They employ security experts to monitor for threats and implement robust defenses to keep funds secure, transactions reliable, and personal information protected. This structure adds accountability and customer support.

Centralized exchanges let you buy and sell crypto, record transactions, and usually offer wallet services where your crypto is stored. They’re responsible for keeping your crypto safe.

When you buy or sell on a centralized exchange, you’re actually moving balances inside their system — not directly on the blockchain. But don't worry, they keep track of who owns what.

CEXs are often the first point of contact for new crypto users. Because of this, there’s plenty of crypto available to fulfill orders. That’s why their transactions are fast and have low fees.

Reputable CEXs use tools like Two-Factor Authentication (2FA) and encryption to keep accounts safe — just like you would have on your bank account. Many also carry insurance to protect users in rare cases of system failure.

CEXs follow government rules to prevent fraud and money laundering. This makes them more transparent — and a safer place to start learning about crypto.

Know Your Customer (KYC) checks are where the CEX will ask for your personal information to confirm you’re a real person. Strong KYC processes also build trust in the exchange’s integrity, reduce counterparty risk, and help ensure regulatory compliance — which ultimately protects both the platform and its legitimate users.

Every CEX charges small fees for trades or withdrawals. Good exchanges show these clearly and keep them predictable, so you know exactly what you’re paying.

CEXs charge a few different types of fees

Trading fees:

A small percentage charged when you buy or sell crypto.

Deposit and withdrawal fees:

While crypto deposits are usually free, crypto withdrawals almost always come with a fee. They may also charge bank transfer or card processing fees.

Conversion or spread fees:

When swapping between currencies, exchanges may add a small markup to the exchange rate.

Other fees:

Some platforms charge for margin trading, liquidation events, or inactivity on your account.