What Is a Crypto Exchange? (CEX Explained)

Education · Informational guide · Updated 2026

Definition

A crypto exchange is a platform where you can buy, sell and trade cryptocurrencies, either for other crypto or for fiat money.

Centralized exchanges

Centralized exchanges, or CEXs, hold customer funds and match orders on their own systems. They are the easiest way to buy crypto with cash.

Decentralized exchanges

Decentralized exchanges, or DEXs, let users trade directly from their wallets using smart contracts, without a central custodian.

How to choose one

Consider liquidity, fees, security, supported assets and whether the exchange is regulated in your region.

The custody question

Centralized exchanges hold your crypto, which is convenient but means you are trusting them. Withdrawing to your own wallet gives you control.

Bottom line

Exchanges are the gateway to crypto. Understand the difference between centralized and decentralized options before choosing.

This article is for educational and informational purposes only and does not constitute financial advice. Always do your own research. Cryptocurrency is volatile and involves risk of loss.