A Centralized Exchange — a company-run platform (like Coinbase or Binance) where you can buy, sell, and trade crypto.
Think of it like an online stock brokerage — the company holds your assets and handles the trades for you.
CEXs are the easiest way for beginners to buy their first crypto, since they handle the technical details and offer familiar interfaces.
Watch out for keeping all your crypto on an exchange — if the company goes bankrupt or gets hacked, you could lose your funds. Consider moving large amounts to your own wallet.
A Decentralized Exchange — a platform where you trade crypto directly with other users through smart contracts, with no company in the middle.
A crypto wallet that's connected to the internet, like an app on your phone or a browser extension, making it easy to send and receive crypto quickly.
A physical device (like a small USB drive) that stores your crypto completely offline, away from the internet.
Still confused? Ask the AI Explainer.
Explain “CEX” with AI →