CEX – What is a Centralized Exchange?
CEX – stands for Centralized Cryptocurrency Exchanges is a Centralized Exchange. An intermediary organization that facilitates cryptocurrency transactions between buyers and sellers. They are a third-party entity that provides services and oversees operations to enable traders to buy, sell or exchange cryptocurrencies.
How CEX exchange works:
- Trading: CEX allows traders to buy and sell cryptocurrencies with fiat currency. Moreover, they also offer many additional services including storage, limits and even leveraged trading and Lending – lending in the crypto industry.
- Regulation: Centralized exchanges usually have a license to operate depending on their country/region. Therefore, they perform kyc and Aml procedures to comply with the law and ensure the safety of their customers.
- Control: Control of the platform and client crypto funds remains in the hands of the exchange. Therefore, if there is an attack, it can lead to the loss of their customers’ cryptocurrency. Several attacks occurred on CEX crypto exchanges that resulted in the loss of Bitcoin and other crypto tokens.
- Trading Fees: Similar to a traditional stock exchange, CEX generates income by charging fees from users who conduct trades through its platform. This is usually a percentage of the trade, and it ranges between 0.1% – 1.5% which is quite low. The platform controls infrastructure, security, maintenance, and the entire system.
Advantages and disadvantages of CEX
- Good interface and user experience with many utilities and features, suitable for new entrants.
- The processing speed of CEX is faster than that of Dex.
- High liquidity.
- Fast transaction speed.
- Must trust 3rd parties.
- You have to transfer money to the exchange wallet and the exchange will control 100% of your assets.
Overview of Current CEX:
BInance is a leading Bitcoin and cryptocurrency exchange in the world, founded by Changpeng Zhao in Shanghai, China in 2017. Currently, Binance has surpassed other major exchanges to occupy the No. 1 and CEO position. Changpeng Zhao is also in the top of the world’s fastest-growing dollar billionaires.
Binance has outstanding advantages for traders to choose when they want to participate in the field of virtual currency as follows:
- High liquidity: Extremely large trading volume, can buy and sell large amounts of coins at any time.
- Cheap transaction fee: Only 0.1%, especially when using Binance coin (BNB) to trade, the fee will be reduced to only 0.075%.
- Super fast transaction speed: Just pressing BUY/SELL is almost instant order matching, orders can be processed with the amount of 1.4 million orders/second.
- Support for many coins: Traders are free to choose the coin they like to trade because Binance supports a lot of coins and tokens.
- Safety and Security: Binance’s team and processing system are extremely professional with state-of-the-art security technology, so you can rest assured when you leave your money in Binance’s wallet. Has been hacked but has a user insurance fund (SAFU), so Binance users are almost unaffected.
- Issuing private exchange coin: Is Binance Coin (BNB), when used will reduce transaction fees, and BNB is also worth the investment.
- There is a trading app on Mobile: You can trade coins on your phone with two versions for iOS and Android.
- Intuitive interface: Has an easy-to-see and easy-to-use interface for newbies.
- Support many languages: Support many languages.
- Professional Support Team: Binance has headquarters in many countries around the world, and each country has its own support team.
Coinbase Pro exchange was founded in 2016, formerly it was named GDAX then in May 2018 changed its name to Coinbase Pro. Coinbase Pro is a leading virtual currency exchange in the US and around the world, owned by Coinbase Ltd, a company known for its crypto wallet services and cryptocurrency exchange platforms such as Bitcoin, Ethereum, Litecoin..
Coinbase is managed by US legal authorities, so it is very safe and not afraid of being scammed, but unfortunately, Coinbase only currently supports buying and selling cryptocurrencies in 32 other countries around the world, not Vietnam.
3. Huobi Global
Huobi was founded by Leon Li on May 15, 2013 and is headquartered in Singapore. Currently, Huobi exchange has offices in many countries such as Hong Kong, Korea, Japan, the United States, Vietnam.. and provides asset management services, safe transactions for users in more than 130 countries. . Huobi Global jointly manages Huobi.com and Huobi websites. Pro, Huobipro.com (3 these sites have now pointed to 1 is Huobi.com), Hadax.com, Hbg.com, so you only need one account that can be used for all these exchanges.
- Advantages of Huobi:
High liquidity: Because it is always in the Top 3 exchanges with the largest trading volume in the world, Huobi’s liquidity is very large.
Low transaction fee: Huobi charges a transaction fee of 0.2%, if you upgrade, the VIP account will be reduced.
Having its own exchange coin: Huobi Token is Huobi’s own coin, and the value is second only to Binance Coin of the Binance exchange, the future growth potential is greater than BNB because the current value of HT Token is still low.
Extremely fast transaction speed: Not inferior to Binance, Huobi’s trading platform is very powerful, the trading speed is almost instant.
Support for many Altcoins: Many coins are supported by Huobi Pro to trade, you can freely choose the potential coin you want.
Safe and Secure: The platform is robustly built with advanced anti-DDOS technologies and most of the client funds are stored in offline wallets.
Diverse platforms: You can trade coins with Huobi exchange on many different platforms such as IOS, Android, MAC, Windows.
Margin trading support: With up to 3x leverage.
Good support team: In each country, Huobi will have its own, fast support team, currently Vietnam also has it.
MXC (now renamed MEXC) is a cryptocurrency exchange, founded by a team of leading experts from Wall Street, Blockchain technology experts from Japan and Europe.
MXC Exchange is not only a cryptocurrency trading platform, but MXC also provides Blockchain asset circulation service to make it more secure, smarter and more convenient.
It provides safer, smarter and more convenient exchange services, along with selected blockchain assets, safe insurance, dedicated to building a cryptocurrency exchange platform that surpasses with competitors.
Currently, the floor is supporting 6 languages: Chinese, English, Vietnamese, Korean, Japanese and Indonesian.
Gate.io is one of the oldest exchanges in China. The exchange was founded in 2013 with the first domain name Bter.com, under the leadership of CEO Lin Han.
In 2015, the Bter.com exchange was hacked, resulting in the loss of about 7,000 BTC in cold wallets.
In 2017, because the Beijing government tightened regulations on cryptocurrencies, Bter.com closed the old domain name, changing its name to Gate.io.
Since then, the exchange has abandoned trading in fiat currency. Gate.io shifts focus to Crypto-Crypto trading.
Gate.io is currently operated by Gate Technology Inc. Corporation, headquartered in Virginia, USA.