DeFi Intel

What is CEX?

Plain-English explainer · Updated 2026-05-03 · By DeFi Intel

A centralized exchange is a custodial trading venue that holds user balances and runs a matching engine off-chain. Major CEXs as of 2026: Binance, Coinbase, Bybit, OKX, Upbit, Kraken. Users deposit, trade against an order book, and withdraw.

Counterparty risk: FTX (Nov 2022) showed users can lose funds if the operator is fraudulent.

How it works

A centralized exchange is a custodial trading venue that holds user balances and runs a matching engine off-chain. Major CEXs as of 2026: Binance, Coinbase, Bybit, OKX, Upbit, Kraken. Users deposit, trade against an order book, and withdraw.

Counterparty risk: FTX (Nov 2022) showed users can lose funds if the operator is fraudulent.

For deeper protocol-level mechanics, see the related glossary terms below or the linked DeFi Intel topic deep-dive.

Why it matters

CEXs are still the dominant fiat onramp and price-discovery venue for new tokens. Counterparty risk (FTX, Mt. Gox) is the structural fragility.

Real-world examples

Binance, Coinbase, Bybit, OKX, Kraken, Upbit, Bitfinex, Bitstamp, Crypto.com.

Related terms

Go deeper

Read the full DeFi Intel topic deep-dive or browse the complete crypto glossary.

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