Centralized Exchange
A centralized exchange (CEX) is a digital platform that facilitates the trading of cryptocurrencies, tokens, and other digital assets by acting as an intermediary between buyers and sellers. It operates under a centralized authority that manages user accounts, order books, and transaction settlements, offering features like fiat on-ramps, advanced trading tools, and custodial services. This model contrasts with decentralized exchanges by providing higher liquidity, faster transactions, and regulatory compliance in many jurisdictions.
Developers should learn about centralized exchanges when building or integrating cryptocurrency trading applications, wallets, or financial services that require reliable and scalable market access. They are essential for projects involving automated trading bots, portfolio management tools, or platforms that need to handle high-volume transactions with minimal latency. Understanding CEX APIs and security protocols is crucial for ensuring secure data handling and compliance in fintech or blockchain-based applications.