Centralized exchange
A centralized exchange is a type of cryptocurrency exchange that allows users to buy and sell digital assets. These crypto exchanges are typically regulated by financial authorities and require users to complete KYC (know your customer) procedures before they can begin trading.
Centralized exchanges typically offer a wider range of features and services than their decentralized counterparts, but they also come with some risks. For example, because these exchanges hold user funds in central wallets, they are susceptible to hacking attacks.
In addition, centralized exchanges may be subject to sudden shutdowns or other changes in policy that can result in user losses. As a result, itâs important to do your research before choosing a centralized exchange. While these exchanges can offer a convenient way to buy and sell digital assets, itâs important to be aware of the risks involved.
