A centralized exchange is a type of cryptocurrency exchange that acts as a middleman between buyers and sellers. It is called a "centralized" exchange because it is controlled by a single entity, which is responsible for matching buyers and sellers and facilitating transactions.
Centralized exchanges are the most common type of cryptocurrency exchange and are often used by retail investors to buy and sell digital assets. They offer a range of features, including a user-friendly interface, fast trade execution, and support for a wide range of cryptocurrencies.
However, centralized exchanges are not without their drawbacks. Because they are controlled by a single entity, they can be vulnerable to hacking and other security breaches. They can also be subject to censorship and interference from governments and other regulatory bodies.
Overall, centralized exchanges are a popular way for retail investors to buy and sell cryptocurrencies, but they can be less secure and less decentralized than other types of exchanges, such as decentralized exchanges.
Try Today For Free
Transform your trading experience with HyperTrader. Say goodbye to slow terminals, multiple windows, excessive clicks, and delayed data. Sign up and start using our platform in under 10 minutes to unlock your full potential.