CEX stands for Centralized Exchange. It refers to a digital marketplace or platform that is operated by a centralized entity or company. On these exchanges, users can buy, sell, and trade cryptocurrencies and other digital assets.

Centralized exchanges function as intermediaries between buyers and sellers, holding users' funds and facilitating transactions through their platforms. They often offer a user-friendly interface, liquidity, and a wide range of trading pairs. However, they require users to deposit their funds into the exchange's wallets, which means users do not have direct control over their assets and are reliant on the exchange's security measures.

Popular examples of centralized exchanges include Binance, Coinbase etc.

In addition to being centralized platforms for trading cryptocurrencies, centralized exchanges (CEXs) often require users to complete a process called Know Your Customer (KYC) verification.